Kalshi turns to Wall Street after retail trading growth

Prediction market platform Kalshi says it handled more than $17 billion in contracts in May, a record that reflects rapid growth driven largely by individual traders over the past year. The company is now trying to expand beyond retail users and attract institutional investors. Kalshi has recently added brokerage partnerships, stronger market surveillance, and infrastructure aimed at making its contracts easier for firms to access and clear. Institutional interest is centered on using event contracts to hedge exposure to elections, economic data, weather, and commodities. Supporters say broader participation could improve liquidity, while skeptics question whether higher fees and more sophisticated competitors will limit the appeal for large investors.