Kalshi partners with BitGo to offer crypto-backed margin loans for perpetual futures
Eligible Kalshi Prime clients can now borrow dollars against Bitcoin, Ether, and compliant stablecoins held at BitGo Bank & Trust to fund leveraged perpetual futures positions on Kalshi.
Kalshi Prime, the US-registered futures commission merchant of prediction market platform Kalshi, has partnered with crypto custodian BitGo to launch a crypto-backed margin lending program. The arrangement allows eligible clients to borrow dollars against Bitcoin, Ether, and qualifying stablecoins without selling their digital assets, directing the borrowed funds toward margin for perpetual futures listed on Kalshi's exchange.[1][2][3][5]
The setup operates as a tri-party structure, according to reporting by Bloomberg. The client acts as the borrower, Kalshi Prime lending affiliate Kalshi Katalyst extends the loan, and the pledged collateral remains stored in segregated custody at BitGo Bank & Trust. Kalshi Prime CEO Jeff Bandman noted that eligible collateral includes Bitcoin, Ether, and stablecoins compliant with the GENIUS Act, adding that the framework aims to let market participants maintain crypto exposure while accessing dollar liquidity.[2][3][5]
While borrowing adds leverage and exposes pledged collateral to potential liquidation risk, additional custodians are expected to join the lending arrangement over time. Kalshi initially launched perpetual futures contracts tied to crypto, gold, and silver earlier this year, with the platform recording approximately $1.1 billion in perpetual futures trading volume on Tuesday, according to DefiLlama data.[2][3][4][5]
Key facts
- Kalshi Prime and BitGo launched a crypto-backed lending program, also referred to as HODL Margining, for eligible trading clients.
- Borrowers can pledge Bitcoin, Ether, and GENIUS Act-compliant stablecoins without selling their holdings to fund perpetual futures margin.
- The loans are extended by Kalshi Katalyst, an affiliate of Kalshi Prime, while assets remain in custody at BitGo Bank & Trust.
- Bloomberg reported that additional custodians are expected to join the lending network in the future.
- Borrowing introduces leverage to trading positions, and pledged collateral is subject to potential liquidation.
- Kalshi's perpetual futures market, launched earlier this year, recorded about $1.1 billion in trading volume on Tuesday according to DefiLlama.
Sources · 5 sources
- BL
Bloomberg@businessPost on X ·
Kalshi will let some clients use crypto as collateral for leveraged perpetual-futures trades through a new BitGo arrangement https://t.co/xU2zMGTsHu
Open source - *B
*Walter Bloomberg@DeItaonePost on X ·
KALSHI AND BITGO ($BTGO) LAUNCH CRYPTO-BACKED MARGIN LOANS Kalshi Prime and BitGo launched HODL Margining, allowing eligible traders to borrow dollars against Bitcoin, Ethereum and stablecoins without selling their holdings. Loans fund trading margin on KalshiEX, while collateral remains in segregated BitGo custody. Borrowing adds leverage, and pledged crypto may be liquidated.
Open source - TB
The Block@TheBlockCoPost on X ·
NEW: Kalshi is partnering with BitGo to let eligible Kalshi Prime clients borrow against bitcoin, ether, and GENIUS Act-compliant stablecoins to fund leveraged perpetual futures positions on its exchange. Loans will be provided by Kalshi Katalyst, a lending affiliate of Kalshi Prime, against assets held at BitGo Bank & Trust, with additional custodians expected to join the network, Bloomberg reports. Kalshi's perpetual futures market, which launched earlier this year, recorded about $1.1 billion in trading volume on Tuesday, according to DefiLlama data.
Open source - CB
Crypto BriefingArticle ·
Kalshi partners with BitGo to offer crypto-backed loans for futures trading Kalshi's crypto-backed loans for futures trading could enhance capital efficiency but also increase risk exposure, influencing market dynamics. The post Kalshi partners with BitGo to offer crypto-backed loans for futures trading appeared first on Crypto Briefing .
Open source - UN
UnchainedArticle ·
BitGo-Held Bitcoin and Ether Will Secure Perps Margin Loans for Some Kalshi Prime Clients Kalshi Prime clients will be able to take out loans against Bitcoin , Ether and stablecoins held at BitGo and put the cash toward margin on perpetual futures listed on Kalshi’s exchange, Bloomberg reported on Wednesday, citing a company statement and an interview with Kalshi Prime CEO Jeff Bandman . Kalshi Prime is the prediction market’s US-registered futures commission merchant. The arrangement lets its clients keep their crypto exposure rather than selling coins to raise dollars for margin. “What we wanted to do was make it possible for customers to stay in crypto,” Bandman reportedly told Bloomberg. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . How the Loans Work The program uses a tri-party structure. The client is the borrower, Kalshi Katalyst , a lending affiliate of Kalshi Prime, extends the loan, and the pledged assets sit at BitGo Bank & Trust . According to Bandman, eligible collateral includes Bitcoin, Ether and stablecoins that meet the requirements of the GENIUS Act , the US stablecoin law. More custodians are expected to join the program later, Bloomberg reported. Bandman pointed to investors who don’t want to sell their Bitcoin, and to a Latin American business that runs on dollar stablecoins, as examples of who might use it. He said he originally had crypto-native traders in mind, including those already trading perpetuals on offshore venues. “That was kind of the audience that I was envisioning, but now that we’ve built it, what’s fascinating is hearing these other use cases come out of the woodwork,” he said. He added that the program could draw crypto trading firms and “whales,” meaning holders of large crypto balances. Kalshi’s Perps Push Kalshi started listing perpetual futures , contracts with no expiration date, earlier this year, with products tied to crypto , gold and silver. The company has also asked regulators to approve perpetual-style contracts on oil and US stocks. In September, its clearinghouse, Kalshi Klear , applied to the Commodity Futures Trading Commission to offer margin on certain event contracts. Related Listen: Why Kalshi Chose Crypto Perps for Its First Move Beyond Prediction Markets The post BitGo-Held Bitcoin and Ether Will Secure Perps Margin Loans for Some Kalshi Prime Clients appeared first on Unchained .
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