(Bloomberg) -- Kalshi Inc. said it has completed its first ever bespoke block trade, with Jump Trading providing liquidity for the prediction market exchange.

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The transaction was brokered this month by Greenlight Commodities on behalf of a Houston-based environmental hedge fund, which sought access to a contract tracking whether a specific price will be realized at a May auction of carbon allowances in California. The contract was created and certified specifically for that trade, Kalshi said in a statement on Monday, with market maker Jump providing liquidity on the opposite side.

The block trade was a six-figure sum, making it far smaller than those typically seen in traditional finance. Still, having the capacity to broker such deals will likely make prediction markets more appealing to institutional investors who need to deploy much larger amounts of capital than Kalshi’s current base of retail clients.

“It’s a step forward as far as us having institutional functionality and support to be able to do these types of transactions,” Max Crowley, Kalshi’s vice president of business development, said in an interview.

Kalshi’s futures clearing merchant was the clearing broker on the trade, Crowley said.

Jump owns a small stake in Kalshi in exchange for providing liquidity on its event contracts, a spokesperson for the trading firm said, confirming an earlier report from Bloomberg News. Kalshi declined to comment on the matter.

“We expect institutional demand to quickly expand across a wide range of contracts,” a Jump representative said in the statement supplied by Kalshi. “We’ve invested meaningfully in this market because we see significant long-term potential,” they added.

Prediction markets platforms say their contracts can be useful for businesses seeking a more precise way to hedge their exposure to certain outcomes. An ice-cream business, for example, might buy cold weather contracts over the summer as a hedge against poor sales.

Part of the mantra is that prediction markets harness the wisdom of the crowd, providing greater accuracy. But most of the profits on rival trading platform Polymarket are being earned by automated bots, an analysis by Bloomberg News found.

Bots have collectively made around $131 million since the start of 2025, operating across more than 800 accounts. The masses, meanwhile, are often on the losing end — around 100,000 accounts lost at least $1,000 each, the analysis showed.

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