Alpaca announced on August 31 a partnership with prediction market operator Kalshi to offer Kalshi’s event contracts through Alpaca’s API platform, letting financial institutions and fintech firms integrate the products without building new trading systems. Under the deal, subsidiary Alpaca Derivatives will connect with Kalshi, with Alpaca handling client asset custody, fund transfers, trade statements and account management while Kalshi provides the trading market, event contracts and clearing services. Alpaca Derivatives has registered as a futures commission merchant with the U.S. Commodity Futures Trading Commission and the National Futures Association but has not yet begun regulated operations, and no launch date has been disclosed. Prediction markets trade around the clock, and the sector’s market size is expected to reach $1 trillion by 2030. Alpaca partners with more than 300 financial institutions worldwide, reaches 14 million brokerage accounts, and sees about 83,000 individual developers use its API each month. Kalshi frames the tie-up as accelerating international expansion after a June partnership with Wealthsimple in Canada, while Alpaca cited customer demand for event contracts as a driver of the move.