Prediction market platform Kalshi has partnered with financial technology giant FIS to launch new clearing infrastructure specifically designed for institutional investors. The system, called FIS CD Prediction Clearing, aims to bridge the gap between regulated prediction markets and the traditional financial institutions of Wall Street.
The partnership connects Kalshi's regulated exchange, which focuses on event contracts tied to real-world outcomes, with the extensive infrastructure FIS provides to banks, brokers, and asset managers globally. The core goal is to integrate prediction markets into the core financial workflows of these institutions, allowing them to access this new asset class through their existing, familiar trading platforms without needing separate systems.
The newly launched infrastructure is engineered for scale and speed, offering real-time clearing and high-volume trade processing to meet the demands of institutional trading. It also incorporates essential institutional features like risk management and reporting tools, ensuring compliance with existing financial regulations and operational standards.
The move comes amid significant growth for Kalshi. The company reported approximately $10.4 billion in trading volume last month and was recently valued at $22 billion following a funding round that raised close to $1 billion. This signals strong investor interest in the regulated event-based trading sector.
By leveraging FIS's established client network and technological backbone, the partnership seeks to dramatically lower the barrier to entry for large financial firms, potentially catalyzing broader institutional adoption of prediction markets for purposes like hedging and gaining market insights on economic data or policy decisions.
