BitGo Prime (BTGO) and Susquehanna Crypto mentioned they’re partnering to offer institutional purchasers with over-the-counter (OTC) entry to prediction market trades, utilizing digital belongings held on BitGo’s platform as collateral.
The providing targets hedge funds, household workplaces and high-net-worth buyers, permitting them to transact in event-driven contracts with out counting on retail platforms or changing crypto holdings into money, the businesses mentioned in a press launch Tuesday.
Liquidity might be offered by Susquehanna Crypto, with trades executed bilaterally by BitGo’s OTC desk. The companies mentioned transactions will observe customary derivatives documentation frameworks. Buyers use over-the-counter desks primarily to commerce giant or advanced positions with out disrupting the market or exposing their technique.
The construction mirrors how establishments already commerce conventional derivatives, the place belongings stay in custody and positions are collateralized reasonably than totally funded upfront. In distinction, most prediction market exercise right now takes place on retail platforms that require pre-funding and provide restricted integration with institutional custody programs.
Institutional buyers are more and more utilizing prediction markets as a hedging device, taking positions on occasion outcomes, comparable to elections, coverage selections or macroeconomic shifts, to offset dangers of their broader portfolios. By pricing discrete, real-world occasions, these markets provide a solution to hedge tail dangers which might be tough to seize with conventional devices comparable to equities, charges, or choices.
Prediction markets have seen speedy development, with buying and selling volumes topping roughly $40 billion–$45 billion in 2025, up several-fold yr over yr as retail participation surged and platforms like Polymarket and Kalshi gained traction.
On the similar time, institutional curiosity has begun to construct, with hedge funds and banks more and more utilizing these markets for value discovery round political and financial occasions, at the same time as infrastructure and regulatory uncertainty proceed to restrict broader adoption.
Regulatory fragmentation has additionally slowed adoption. Within the U.S., platforms like Kalshi function underneath Commodity Futures Buying and selling Fee oversight, whereas others, comparable to Polymarket, stay offshore, limiting entry for home institutional capital. That has pushed many companies to discover various buildings that higher align with current compliance frameworks.
The businesses mentioned the brand new providing is designed to handle these gaps by combining custody, collateral administration and OTC execution right into a single workflow. By permitting buyers to commerce in opposition to crypto collateral with out shifting belongings off-platform, the mannequin goals to convey prediction markets nearer to the infrastructure establishments already use in different asset courses.
Learn extra: AI brokers are quietly rewriting prediction market buying and selling