Clear Street is partnering with Kalshi Inc. to give its clients access to event bets, as the prediction markets industry seeks to increase its appeal to Wall Street.

Clear Street’s futures commission merchant will join Kalshi’s exchange and clearing house, and the broker will launch swap capabilities for exchange-traded fund issuers tied to prediction markets.

Prediction markets have soared in popularity, with Kalshi and Polymarket processing $23.3 billion in notional trading volume last month, and event contracts can be useful for businesses seeking to hedge exposure to real-world events.

Clear Street’s futures commission merchant will join Kalshi’s exchange and clearing house. The broker will also launch swap capabilities for exchange-traded fund issuers tied to prediction markets.

“Prediction markets are emerging as a regulated, fast-growing asset class, and our institutional clients want access to clearing, risk management and swap product capabilities for this growing space,” Andy Volz, chief commercial officer of Clear Street, said in a statement.