Bitgo and Susquehanna Crypto have partnered to provide institutional clients with a new pathway to prediction markets without forcing them to use retail channels or liquidate assets. The collaboration, announced Tuesday in New York and shared with Bitcoin.com News, connects Bitgo Prime's over-the-counter (OTC) desk with liquidity supplied by Susquehanna Crypto, creating what both firms describe as an institutional-grade framework for trading event-based contracts.
Institutional-Grade OTC Trading Framework
At its core, the offering allows hedge funds, family offices, and high-net-worth individuals to use crypto collateral or stablecoins already custodied on Bitgo's platform to access prediction market liquidity. Until now, institutions interested in prediction markets often had to navigate retail interfaces or liquidate digital asset positions to fund trades—an inefficient route for firms managing large, structured portfolios.
The new arrangement keeps those positions intact. Trades are executed bilaterally with Bitgo, while Susquehanna Crypto provides liquidity for relatively liquid event contracts, typically worth $100,000 or more. Transactions are structured using standard derivatives documentation, including binary option and event contract confirmations, aligning the process with familiar institutional risk management and onboarding practices.
Bridging the Infrastructure Gap for Prediction Markets
Prediction markets have quietly become a go-to venue for pricing probability of real-world events—from elections to economic outcomes—yet institutional participation has lagged due to a lack of infrastructure around custody, collateral, and execution. This partnership aims to fill that gap by combining Bitgo's custody services and trading platform with Susquehanna Crypto's market-making capabilities, offering a workflow that resembles traditional derivatives markets.
Matt Ballensweig, Bitgo's head of global trading, said prediction markets have evolved into relevant tools for pricing but lacked seamless institutional access. “This offering is designed to give clients a smoother way to access that liquidity through bilateral OTC execution and a digital asset collateral framework built for institutional use — clients can use USD, stablecoins, BTC, or other crypto as collateral to trade listed contracts worth $100,000 or more,” Ballensweig added.
Chase Lax, CEO of Susquehanna Crypto, described the move as a natural expansion of the firm's work in event-driven markets, adding that prediction markets are increasingly viewed as a legitimate institutional asset class. The launch reflects a broader shift: prediction markets are no longer just a retail playground, but are increasingly approaching the infrastructure standards expected by professional trading firms.
For institutions that would rather not use a consumer app—or liquidate positions just to bet on macro outcomes—the message is clear: stay in your lane, keep your collateral, and keep trading on odds.