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.

Magazine: Binance & OKX users face $1,900 fines in Vietnam, Coinbase in China? Asia Express

Artificial intelligence (AI) agents are the next “killer” use case for blockchain and cryptocurrency, according to investment management giant Franklin Templeton’s head of digital assets and innovation.

Sandy Kaul said in a X post on Wednesday that the AI agent economy will increase demand for blockchain protocols hosting machine-to-machine micropayments, as legacy card networks are unsuitable for agentic payments due to high fees and settlement times.

“To capture the AI growth opportunity today, most investors buy shares of AI-aligned companies and related verticals. But will the same playbook work for agentic AI,” Kaul said in the introduction to his more-than-1,800 word post.

He said blockchain networks such as Aptos, Solana and the BNB Chain are more suited for the agentic economy, as they settle transactions in seconds, faster than the one-to-three business-day settlement time of the Visa network.

In a joint report published last Wednesday, payments giant Visa and investment thesis platform Artemis argued that traditional cards built for low-frequency human commerce are insufficient for AI agents, which need infrastructure with near-zero fees and faster settlement to make agentic micropayments commercially viable.

Visa’s crypto division and Stripe-backed Tempo both launched AI tools in March. Visa’s allows AI agents to make same-day payments. 

Some machine payment protocols are boasting signs of adoption. The x402 payment protocol developed by Coinbase processed $15 million in adjusted volume across over 109 million adjusted transactions since it was launched in May 2025, according to Visa and Artemis’ joint report.

Magazine: How South Korea is using AI to detect crypto market manipulation

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Digital asset infrastructure provider BitGo and OTC Markets Group, the operator of regulated over-the-counter securities markets, plan to partner on digital asset trading and custody infrastructure for broker-dealers, a move that could expand institutional access to tokenized securities through existing market infrastructure.

The companies said Wednesday that the proposed alliance will serve more than 150 broker-dealers using OTC Link ATS, an alternative trading system regulated by the US Securities and Exchange Commission. If implemented, participating broker-dealers would be able to quote, trade and settle digital asset securities using the same electronic trading infrastructure they currently use for over-the-counter and US equity markets.

Under the proposal, BitGo Bank & Trust would act as the qualified custodian, while settlement would be facilitated through BitGo’s Go Network. The proposed framework is initially intended to support digital asset securities, with the potential to expand to tokenized assets and commodities as regulatory frameworks evolve.

The announcement comes as traditional financial institutions increasingly explore tokenized versions of real-world assets, while US regulators have moved toward establishing clearer rules for digital asset markets.

In December, BitGo received final approval from the US Office of the Comptroller of the Currency to operate as a federally chartered national trust bank, allowing it to provide qualified custody services under federal banking oversight.

Investors lifted OTC Markets Group’s stock price roughly 2.7% by midday on Wednesday, to $53.50 a share on thin volume.

Related: SoFi taps BitGo to provide infrastructure for bank-issued stablecoin

Why broker-dealers matter for tokenization

Broker-dealers could play a major role in the transition to tokenized securities because they already operate within established regulatory and market frameworks. By integrating digital asset trading and custody into existing infrastructure, the BitGo-OTC Markets alliance could reduce operational barriers for broker-dealers looking to offer tokenized securities without requiring them to adopt entirely new crypto-native systems.

The proposed alliance comes as the market for tokenized securities continues to expand. Analysts at Bernstein have projected that the value of tokenized real-world assets could reach up to $4 trillion by 2030, driven by broader adoption across equities, commodities, and other financial assets.

The announcement also follows similar efforts by companies including Securitize and Cantor Fitzgerald to bring tokenization to capital markets, including initial public offerings and follow-on equity offerings.

Bernstein analysts identified tokenization and prediction markets as the next assets “battleground” for exchanges and brokers. Source: Bernstein

Related: Tradable’s $1B Stellar deal adds to institutional tokenization boom

A group of Democrat Senators said in a statement late Wednesday that the bill still fell “short” of where it needed to be to get their support, but that they would keep working on it with Republicans. Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, argued Wednesday that the policy as written would let Trump continue his crypto businesses largely untouched, and any improper activity would be ignored by his loyal Department of Justice and then legally fenced off from prosecution once he leaves office.

Other outstanding issues

Beyond ethics, lawmakers may continue to negotiate over illicit finance provisions, Lummis said.

“We think we’ve landed in a good place,” she said, because the effort addresses the Bank Secrecy Act, money-laundering protections, sanction coverage for exchanges and decentralized finance (DeFi).

Some of the new additions were made at the request of law enforcement, such as a provision addressing crypto automated teller machine (ATM) fraud.

There is also a safe harbor for crypto platforms to freeze funds if they suspect the assets are tied to suspicious transactions, particularly if those companies are cooperating with law enforcement, she said.

The text also includes a provision saying it is the “sense of Congress” that at least two of the commissioners on the Securities and Exchange Commission and Commodity Futures Trading Commission would be nominated in consultation with the minority party. Right now, neither agency has any Democratic commissioners, with the SEC helmed by three Republicans, while the CFTC just has a single commissioner running the agency.

A cryptocurrency-aligned political action committee (PAC) affiliate is spending heavily in a Michigan Democratic primary that will decide who advances to the November general election. According to Federal Election Commission (FEC) filings posted as of Tuesday, Protect Progress PAC has poured more than $986,000 into ads backing Rep. Shri Thanedar while also funding messaging against his challenger, Donavan McKinney, ahead of an Aug. 4 primary.

The spending comes at a moment when crypto industry-linked political groups are working to shape which candidates reach Congress. The Michigan race is one of several contests referenced in recent FEC disclosures showing continued efforts by Fairshake and related entities to influence elections on “pro-crypto” policy priorities.

Key takeaways

• Protect Progress PAC reported spending over $986,000 on ads supporting Shri Thanedar and opposing Donavan McKinney ahead of Michigan’s 13th district Democratic primary on Aug. 4.
• The PAC’s approach mirrors its 2024 spending, when it backed Thanedar with about $1 million before he won both the primary and the general election.
• Fairshake and affiliates have reported a sizable political “war chest,” with filings indicating $191 million available to influence key races.
• In addition to Michigan, Protect Progress PAC activity cited in FEC data includes Arizona media buys supporting Rep. Greg Stanton.
• Other Fairshake-linked groups referenced in FEC reports are also active in Washington primaries, including a media spend to support a candidate described as publicly supportive of crypto.

Protect Progress steps up in Michigan’s 13th district

FEC paperwork filed by Protect Progress PAC shows that, as of Tuesday, the committee had spent more than $986,000 on advertising tied to Michigan’s 13th congressional district. The ads were described in filings as supporting Democratic incumbent Shri Thanedar and opposing his Democratic primary challenger Donavan McKinney.

Those expenditures were reported roughly two weeks before the scheduled primary on Aug. 4. The timing is notable because primary races often hinge on relatively short bursts of messaging that can define a candidate’s perceived record and priorities for voters before ballots are cast.

Protect Progress’ media push in Michigan also reflects its earlier investment in Thanedar’s political trajectory. In 2024, the PAC reportedly spent about $1 million supporting Thanedar. That year, he won the Democratic primary with 54.9% of the vote and then carried the general election with 68.6% against Republican and other opponents.

Crypto policy backdrop: votes, investments, and campaign narratives

The Michigan ads and counter-messaging are unfolding against a record that has been used by both sides to frame the race as a referendum on crypto-related legislation and financial ties.

The article notes that Thanedar previously supported multiple crypto-related bills while serving in the House, including the CLARITY Act, the GENIUS Act, and the Promoting Innovation in Blockchain Development Act. Those policy positions have been a consistent element in how “pro-crypto” advocacy groups portray candidate alignment.

For his part, McKinney has not been described in the filing coverage as having made prominent public statements directly supporting or opposing digital assets before this campaign. By contrast, the coverage describes Thanedar as having invested campaign funds into crypto companies while in office, citing reporting that he lost more than $600,000 in the second quarter of 2026 after investing $3.7 million of campaign funds into crypto-related companies.

McKinney’s response to the Protect Progress spending was pointed. In a Tuesday statement referenced in the coverage, he argued that “the crypto lobby” was effectively backing his opponent, accusing it of seeking to stop his movement in the race.

Election influence spreads beyond Michigan

The Michigan primary is only one piece of a larger map of political spending. FEC reporting referenced in the coverage indicates that Fairshake and affiliated entities have reported having $191 million available in a “war chest” intended for election influence across multiple key races.

That broad capacity is linked to a network of PACs connected to the crypto industry’s political engagement. The coverage points to other groups including Fellowship, which is described as backed by Cantor Fitzgerald and Anchorage Digital, and the Blockchain Leadership Fund, described as a hybrid PAC backed by Anchorage and Chainlink Labs.

Even within the same Protect Progress ecosystem, the cited FEC activity goes past Michigan. According to the article, Protect Progress PAC also spent more than $100,000 on media supporting Representative Greg Stanton’s reelection bid in Arizona. It further notes that Stanton voted for CLARITY and GENIUS while in the House and that he won his Tuesday primary in Arizona’s 4th district with 65% of the vote.

In Washington, the primary calendar listed for Aug. 4 is also tied to possible Fairshake-affiliated involvement. FEC filings cited in the coverage indicate that the Defend American Jobs PAC spent more than $65,000 on media to support Amanda McKinney, a Republican candidate running for Washington’s 4th congressional district. The reporting also notes that she has made at least one public statement supporting crypto.

The article further states that Representative Dan Newhouse announced in 2025 that he would not seek reelection in that district, underscoring why outside spending could matter more in open-seat or competitive races.

What to watch between now and the primary

With Protect Progress’ reported advertising push arriving just weeks ahead of Michigan’s Aug. 4 primary, the most immediate signal for voters and campaign strategists will be how quickly counter-arguments—particularly around crypto policy alignment and campaign-finance-related claims—gain traction in the same short window.

Readers following crypto-linked political spending should also watch whether Fairshake-affiliated committees continue to shift focus across multiple states on the same calendar, and whether forthcoming reporting from election filings adds clarity on how far these media buys extend as the primaries near.