Talos brings institutional trading tools to Kalshi prediction markets

Institutional crypto trading platform Talos has integrated with Kalshi, allowing select clients to trade the prediction market operator’s event contracts and crypto perpetuals through the same infrastructure they already use for digital assets, eliminating the need for a separate connection.

Talos will offer algorithmic order types including Iceberg, TWAP and POV, along with multi-leg execution for perp-to-perp and perp-to-spot spread trades. The company said institutional clients will also be able to execute block trades in Kalshi contracts through its request-for-quote platform using participating over-the-counter liquidity providers.

Later this year, Talos plans to extend its dealer software to brokers and trading platforms, allowing them to offer Kalshi event contracts directly to customers where permitted. The company also plans to launch a unified prediction market data feed that standardizes events, trades, order books, open interest and implied probabilities across venues.

The integration lowers the operational hurdles for hedge funds, market makers and other professional trading firms already using Talos to add regulated prediction markets alongside their existing crypto trading activity.

Related: Kalshi says CFTC, Michigan orders leave it in ‘impossible position’

Prediction markets hit record trading volumes

The Talos integration comes as prediction markets attract record trading activity and growing institutional interest. According to a report from CoinGecko, notional trading volume reached $113.8 billion in the second quarter, up 48.7% from the previous quarter, while June’s $52.8 billion in notional volume marked a new monthly record.

CoinGecko attributed the surge to a packed sports calendar, including the UEFA Champions League final, NBA Finals, Stanley Cup, FIFA World Cup and Wimbledon. On Polymarket, sports contracts accounted for 81% of June trading volume, up from 40% in January.

Kalshi expanded its lead among prediction market platforms, increasing its market share to 58.9% from 42.4% in the first quarter. Polymarket’s share fell to 30.2% from 35.8%, while Rothera, the Robinhood and Susquehanna International Group-backed venture launched in May, climbed to fourth place in June with $2.1 billion in notional trading volume.

Prediction markets monthly notional volume. Source: CoinGecko

Despite the rapid growth, prediction markets continue to face legal and regulatory headwinds. In the United States, Kalshi is battling several state regulators over whether its sports event contracts constitute illegal gambling, a dispute many legal observers believe could ultimately reach the US Supreme Court.

The industry is also facing growing scrutiny over potential insider trading. Earlier this year, six Polymarket traders reportedly made about $1 million by correctly betting on US military strikes against Iran before the attacks became public.

Last week, a White House teleprompter operator was placed on unpaid leave after allegedly making more than $100,000 betting on Kalshi markets tied to President Donald Trump’s speeches.

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