Kalshi and BitGo roll out crypto-backed borrowing setup for select clients

Bloomberg reported that prediction market platform Kalshi has entered a new arrangement with crypto custody firm BitGo that will let certain clients borrow against digital assets held in custody and use the loan proceeds as margin for leveraged perpetual futures trading on the Kalshi exchange. The setup is aimed at clients of Kalshi Prime, Kalshi’s U.S.-registered futures commission merchant, and uses a three-party collateral management structure. Loans will be issued by affiliated lending company Kalshi Katalyst, while pledged assets will be held at BitGo Bank & Trust. Eligible collateral includes Bitcoin, Ether, and stablecoins viewed as compliant with the GENIUS Act. The report added that other custodians are expected to be added later. Kalshi Prime CEO Jeff Bandman said the arrangement is designed to let clients trade without exiting their crypto positions, and could appeal to crypto-native trading firms and whales holding large digital asset balances.