Kalshi to support crypto asset collateral borrowing for perpetual futures margin

October 21 - According to Bloomberg, prediction market platform Kalshi has reached a new arrangement with crypto asset custodian BitGo, allowing certain clients to borrow against their custodied crypto assets and use the loan proceeds as margin for leveraged perpetual futures trading on the Kalshi exchange.

The arrangement is aimed at clients of Kalshi Prime, Kalshi's US-registered futures commission merchant, and adopts a tripartite collateral management structure. Loans are provided by its affiliated lending company Kalshi Katalyst, with collateral assets held at BitGo Bank & Trust. Eligible collateral includes Bitcoin, Ethereum, and stablecoins deemed compliant with the GENIUS Act, with other custodians expected to be onboarded subsequently.

Jeff Bandman, CEO of Kalshi Prime, said the arrangement is designed to allow clients to participate in trading without exiting their crypto asset positions, and could attract crypto-native trading institutions as well as whales holding large amounts of digital assets.