Kalshi and BitGo partner to enable crypto-collateralized margin loans

Prediction market Kalshi has partnered with crypto custodian BitGo to allow Kalshi Prime clients to use digital assets as collateral for margin loans. Under this new tri-party arrangement, clients can borrow funds against Bitcoin, Ether, and compliant stablecoins held at BitGo Bank & Trust to fund perpetual futures positions on Kalshi’s exchange.

The program utilizes a structure involving the borrower, the lending affiliate Kalshi Katalyst, and BitGo as the custodian. By allowing users to borrow against their holdings rather than selling them for cash, the initiative aims to help traders maintain their crypto exposure while accessing leverage within a US-regulated framework.

Kalshi Prime CEO Jeff Bandman noted that the service is designed to attract crypto-native institutions and large-scale holders, often referred to as whales, who currently utilize offshore platforms for perpetual trading. The move follows Kalshi’s expansion into crypto derivatives, including its Bitcoin perpetual contracts approved by the CFTC.