Kalshi has partnered with BitGo to let select clients borrow against digital assets and use the proceeds to margin perpetual futures trades on its exchange. The arrangement is designed for traders who want to keep exposure to their crypto holdings instead of selling them to fund new positions.
The offering will be available through Kalshi Prime, the company’s US-registered futures broker, and will initially accept Bitcoin, Ethereum, and stablecoins that meet the requirements of the US GENIUS Act as collateral.
How the structure works
Under the setup, clients will place eligible crypto assets with BitGo Bank & Trust, where the holdings will serve as collateral for loans. Those loans will be issued by Kalshi Katalyst, the lending arm of Kalshi Prime, and the borrowed funds can then be used for margined perpetual futures trading on Kalshi’s main exchange.
Kalshi said the collateral will be managed through a tri-party structure involving the borrower, the lender, and an intermediary responsible for handling the pledged assets. The goal is to let clients unlock liquidity from existing crypto positions while keeping those assets in custody rather than selling them outright.
Who the product is aimed at
The company expects the program to appeal to crypto traders and larger digital-asset holders who want to finance futures activity without exiting their underlying positions. According to the report, the structure is also intended for users who already participate in perpetual futures markets elsewhere, including offshore venues.
Kalshi Prime CEO Jeff Bendman said the broader objective is to make it easier for customers to remain in crypto. He pointed to investors reluctant to sell bitcoin and to Latin American businesses that use US dollar-pegged stablecoins in everyday operations as examples of potential demand for the product.
Kalshi’s push into perpetual futures
Kalshi started offering perpetual futures in early 2026, listing contracts tied to gold, silver, and cryptocurrencies. Perpetual futures differ from traditional futures because they do not have an expiration date.
By late October, trading volume in those products had exceeded $1.2 billion, according to the report. Bendman said he expects the new lending-and-collateral mechanism to help attract additional activity from crypto-native trading firms and other large holders of digital assets.
Next steps and constraints
Kalshi Prime’s chief executive said the company plans to add more custodians to the network over time, which would expand the infrastructure supporting the collateral program beyond BitGo. For now, the confirmed framework centers on BitGo custody, Kalshi Katalyst lending, and access for select Kalshi Prime clients.
The company also sees room to expand beyond its current US framework, but Bendman acknowledged that prediction markets still face regulatory risks. That leaves the new product positioned as a concrete operational rollout, while any broader expansion remains subject to the limits and uncertainties of the regulatory environment.
Source: incrypted.com