Tradeweb Markets and Kalshi entered a partnership that aims to bring prediction markets and event contracts into the core workflows of institutional investors. Tradeweb has also made a minority investment in Kalshi as part of the deal.

According to the global operator of electronic marketplaces, the collaboration combines Tradeweb’s electronic trading platform and global institutional client base with Kalshi’s event-driven markets and data.

Partnership and Investment

Tradeweb plans to use its reach to expand institutional access to prediction market data and trading. The firm's CEO, Billy Hult, said prediction markets are becoming part of the trading landscape and can help institutions assess macro risk and allocate capital.

• Tradeweb and MarketAxess Just Moved $65.5 Trillion in January
• Tradeweb Debuts Saudi Electronic Bond Platform, First Trades Involve BlackRock and BNP Paribas
• Tradeweb Names Former Citigroup Executive as Asia Chief

“Prediction markets are increasingly becoming a key part of the trading landscape, and have the potential to become an indicator for institutions to dynamically assess macro risk and allocate capital more effectively.”

You may also find interesting: Inside the Prediction Markets: Working Their Way Into Wall Street and Beyond

The first stage of the partnership will focus on data. Tradeweb and Kalshi will integrate Kalshi’s real-time event probabilities and market data into Tradeweb’s rates and credit marketplaces.

The firms will also co-develop analytics that combine Kalshi’s event probabilities with Tradeweb’s pricing, liquidity, and macro data. The aim is to give institutional investors new tools for forecasting, risk management, and pricing that incorporate event-based signals, such as the probability of policy decisions or economic releases.

Event-Contract Trading Plans

Beyond data and analytics, Tradeweb and Kalshi will explore creating an institutional-focused portal for trading event contracts. Tradeweb would act as the front-end access point, while Kalshi would provide the underlying prediction markets platform.

The deal follows a similar arrangement with Jump Trading. The proprietary investment firm is set to acquire a minority equity stakes in prediction-market platforms Kalshi and Polymarket in exchange for providing liquidity , according to Bloomberg. The investment strengthens the Chicago-based firm’s connection to a fast-growing segment of the derivatives market centered on event-based contracts.

The agreement with Kalshi includes a predetermined equity allocation, sources familiar with the matter said, requesting anonymity because the discussions are private. Jump’s stake in Polymarket, meanwhile, will reportedly be determined by the scale of trading capacity the firm ultimately contributes to the platform’s U.S. operations.