Product Marketing Manager

Kalshi and BitGo launch crypto-backed margin loans. October 22, 2026 at 12:08 PM GMT+0 * Kalshi Prime and BitGo (BTGO) have partnered to allow traders to borrow dollars against Bitcoin, Ethereum, and stablecoins without selling their holdings. * The loans are used to fund margin on Kalshi's futures exchange, with collateral held in segregated custody at BitGo Bank & Trust. * The arrangement adds leverage, meaning pledged crypto may be liquidated if market moves go against the borrower. A new leverage tool for crypto traders. Kalshi Prime, the futures commission merchant arm of prediction market platform Kalshi, and BitGo, the publicly traded digital asset infrastructure provider, announced on October 21 a new product that lets eligible traders borrow dollars against their cryptocurrency holdings. The service, branded HODL Margining, allows customers to pledge Bitcoin, Ether, and stablecoins that comply with the GENIUS Act as collateral while retaining their exposure to those assets. The borrowed dollars can then be used to meet margin requirements on Kalshi's main exchange, including perpetual futures contracts. According to details confirmed by Bloomberg, the lending is conducted through Kalshi Katalyst, an affiliate of Kalshi Prime, while BitGo Bank & Trust holds the pledged assets in a tri-party collateral management arrangement. The structure keeps the collateral outside the trading venue, a design that has become increasingly common as exchanges seek to reduce counterparty risk. Other custodians may be added in the future, according to people familiar with the matter. The appeal for traders is clear: they can access liquidity without selling their crypto, potentially deferring capital gains taxes and maintaining their market positions. Jeff Bandman, who leads Kalshi Prime, said the product is aimed at investors who are reluctant to part with their Bitcoin as well as businesses in Latin America that operate with dollar stablecoins. Leverage cuts both ways. The arrangement, however, introduces a double-edged sword. Borrowers retain their crypto exposure but also take on a leveraged trading position. If the value of the pledged collateral falls sharply, they could face margin calls or forced liquidation of their assets. Segregated custody protects the assets from being commingled with exchange funds, but it does not shield them from market risk. "The central trade-off is leverage," said one market participant who reviewed the structure. "Customers are effectively doubling down on crypto exposure while financing a separate trade." The specific terms of the loans - including interest rates, loan-to-value ratios, collateral haircuts, and liquidation thresholds - have not been disclosed, making it difficult to assess the true cost and risk for borrowers. Kalshi's move into crypto-backed lending comes as the company expands beyond its roots in event contracts. The privately held exchange, which reached a $22 billion valuation after a $1 billion funding round in May, has been pushing into regulated futures. Its CEO, Tarek Mansour, has said the broader dispute over prediction market jurisdiction could reach the Supreme Court, though that litigation concerns sports contracts and is separate from the new loan product. BitGo's expanding role in crypto finance. For BitGo, the partnership is the latest in a series of moves to expand its financing and infrastructure offerings. The company, which began trading on the NYSE under the ticker BTGO in January, reported second-quarter revenue of $4.329 billion, up nearly 80% year over year, but posted a net loss of $19 million as direct costs nearly matched revenue. The firm has recently acquired NYDIG's institutional trading business and appointed a new chief compliance officer and head of research. BitGo's custody arm provides the backbone of the new lending arrangement, holding collateral in segregated accounts. The company also announced a separate research unit, BitGo Labs, focused on AI and crypto applications, but that initiative is not part of the margin loan structure. The launch also highlights the growing intersection of crypto and traditional finance. Kalshi's use of a registered futures commission merchant and a federally chartered trust bank for custody reflects a regulatory posture that could appeal to institutional investors. Stablecoin eligibility is explicitly tied to compliance with the GENIUS Act, a nod to the evolving regulatory framework for digital assets. What's next. Industry observers will be watching for the specific terms of the loans, which could determine whether the product gains traction. Without details on pricing and risk controls, it is unclear whether the economics will attract enough borrowers to make a material contribution to Kalshi or BitGo. Both companies declined to comment on the terms. For now, the partnership offers a new way for crypto holders to access dollar liquidity while keeping their positions intact. But as with any leveraged product, the potential for amplified losses during market downturns remains a key risk. Traders who pledge their crypto may find that their HODL strategy comes with hidden costs. Correction: An earlier version of this article misstated the entity providing the loans. Lending is conducted by Kalshi Katalyst, not BitGo.

Kalshi and BitGo launch Bitcoin and ethereum-backed loans for Futures Trading. Kalshi and BitGo launch Bitcoin and Ethereum-backed loans so eligible clients can fund perpetual futures trades without selling their crypto. By Trader Edge October 22, 2026 3 Mins Read Tldr. * Kalshi has partnered with BitGo to let eligible clients borrow against Bitcoin, Ether and compliant stablecoins. * Kalshi Katalyst will issue the loans, and BitGo Bank & Trust will hold the pledged assets. * Borrowed funds can be used as margin for perpetual futures on Kalshi's exchange. * Kalshi Prime CEO Jeff Bandman says the goal is to let customers "stay in crypto." * Kalshi handled about $1.1 billion in perpetuals trading on Tuesday, according to Bloomberg. Kalshi has partnered with BitGo to offer loans backed by Bitcoin and Ethereum. Eligible clients can use the money to fund leveraged perpetual futures trades. They keep ownership of their crypto while they do it. The loans will be offered through Kalshi Prime, the company's U.S.-registered futures commission merchant. Customers can borrow against digital assets they hold at BitGo. The money can then go toward margin for futures contracts on Kalshi's main exchange. Kalshi Katalyst, an affiliate of Kalshi Prime, will issue the loans. The pledged collateral will sit at BitGo Bank & Trust. The setup is known as tri-party collateral management. In this model, three parties are involved. One takes the loan, one provides it, and a third looks after the pledged assets. This keeps the collateral separate from the lender and the borrower. Who can use the loans. Kalshi Prime CEO Jeff Bandman said Bitcoin, Ether and stablecoins that meet Genius Act standards will qualify as collateral. He added that other custodians are likely to join the network over time. The service is aimed at investors who want futures exposure without selling their crypto. "What we wanted to do was make it possible for customers to stay in crypto," Bandman said. He named large Bitcoin holders as one target group. He also pointed to a Latin American company that relies on U.S. dollar stablecoins for its operations. Bandman said the product could also appeal to crypto-native trading firms and large holders, often called whales. Many of these traders already use perpetual futures on offshore markets. Bloomberg reported that this is a group where Kalshi may be at a disadvantage to Polymarket, an offshore, blockchain-based rival. "I built this because I was thinking about digitally native customers who are active and who might already be trading perpetual futures in some of the unregulated offshore markets," Bandman said. Perpetual futures at Kalshi. Perpetual futures are contracts with no expiration date. Traders can hold a position as long as they meet margin requirements. Kalshi began offering them this year on gold, silver and cryptocurrencies. The Commodity Futures Trading Commission approved the BTCPERP contract on May 29. Kalshi's crypto perpetual futures passed $1 billion in trading volume within a week of launch. Before that, U.S. traders had no regulated domestic platform for these contracts. In September, Kalshi added perpetual futures tied to BNB, ADA and AAVE. The exchange has also asked regulators to approve perpetual-style contracts linked to oil and U.S. equities. Also in September, Kalshi Klear, the company's clearinghouse, asked the CFTC for approval to offer leverage on event contracts. Regulated U.S. event contract exchanges now require full collateralization of all positions. Access to that leverage would be limited to participants who meet Kalshi Klear's requirements. These include self-clearing members that meet set capital thresholds. According to Bloomberg, Kalshi processed roughly $1.1 billion of perpetuals trading on Tuesday. The crypto-backed loan program was reported on October 21, 2026. Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions - all in one powerful platform. Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount. Limited Time Offer Get 3 free stock ebooks. Discover top-performing stocks in AI, Crypto, and Technology with expert analysis. * Top 10 AI Stocks - Leading AI companies * Top 10 Crypto Stocks - Blockchain leaders * Top 10 Tech Stocks - Tech giants Futures & Crypto Trader | Sharing charts, strategies, & mindset tips to help you level up | Not Financial Advice Follow on X @Pro_Trader_Edge October 23, 2026

BitGo helps Kalshi traders leverage crypto without exiting holdings. By PYMNTS | October 21, 2026 Kalshi and BitGo Holdings have partnered to enable some Kalshi clients to use eligible cryptocurrencies to post collateral for leveraged perpetual futures trades, Bloomberg reported Wednesday (Oct. 21). Under this collaboration, customers of Kalshi's U.S.-registered futures commission merchant, Kalshi Prime, will be able to borrow against digital assets held at BitGo, which is a digital asset infrastructure firm, and use the proceeds to fund margin positions on futures traded on Kalshi's prediction markets platform, according to the report. This arrangement is designed to meet the needs of investors who, for example, don't want to exit their bitcoin holdings or rely on stablecoins for their business operations, Kalshi Prime CEO Jeff Bandman told Bloomberg in an interview. "What we wanted to do was make it possible for customers to stay in crypto," Bandman said, per the report. Please add Money By Design to your preferred sources list so its news, data and interviews show up in your feed. Thanks! CoinDesk reported in July that Kalshi's perpetual futures tied to bitcoin and other digital assets topped $1 billion in trading volume within a week of their launch in June. The Commodity Futures Trading Commission (CFTC) gave both Kalshi and Coinbase approval to list perpetual futures in the United States. A Kalshi executive told Reuters in July that the company aimed to expand into the derivatives space for things like metals, foreign exchange and energy markets and to compete against traditional exchange operators by offering perpetual futures. CNBC reported in September that Kalshi obtained CFTC permission to list precious metals-related perpetual futures, including those for gold and silver, on its platform. CNBC reported in April that perpetual futures are one of the biggest and riskiest parts of crypto trading, that they make up more than 70% of centralized cryptocurrency exchanges' volume, and that Kalshi and Polymarket were set to begin offering the products once the CFTC allowed the products in the U.S. Meanwhile, BitGo announced in January that it raised $212.8 million in its initial public offering. Reuters reported at the time that the IPO valued the company at $2.08 billion, a figure higher than the $1.96 billion BitGo had said it was targeting. In August, BitGo introduced BitGo Link, describing it as a centralized control layer that gives trading and treasury teams a unified way to manage their capital across BitGo and other exchanges.