BitGo Prime, the institutional arm of crypto custodian BitGo, has partnered with proprietary trading firm Susquehanna Crypto to launch an over-the-counter (OTC) service providing institutional clients with direct access to listed prediction market contracts. The service, announced on March 24, 2026, is designed to bridge a significant infrastructure gap that has previously kept large-scale professional capital from participating in event-driven markets.
The offering is explicitly targeted at hedge funds, family offices, and ultra-high-net-worth individuals. A key feature is that eligible clients can post collateral—including U.S. dollars, stablecoins, Bitcoin (BTC), or other cryptocurrencies—that is already held within BitGo's custody ecosystem. This structure allows institutions to trade without liquidating their existing digital asset positions, addressing a major capital-efficiency hurdle. The minimum trade size is set at $100,000 or more.
The trading framework is built to mirror established institutional derivatives workflows. Transactions are executed bilaterally with BitGo, with Susquehanna Crypto providing the liquidity. The documentation includes standard derivatives paperwork alongside dedicated binary option and event-contract confirmations, a design intended to ease onboarding, execution, and risk management for professional desks.
The launch occurs against a backdrop of rapid institutionalization within the prediction market sector. Platforms like Kalshi and Polymarket are reportedly exploring fundraising rounds that could value them at around $20 billion, roughly double their late-2025 valuations. Kalshi has also reported an annualized revenue run rate of approximately $1.5 billion. Major firms like Coinbase, Robinhood, and even traditional exchanges like Nasdaq and Cboe have signaled interest in the space.
However, regulatory uncertainty remains a headwind. Kalshi is currently facing state-level legal challenges in Nevada and Massachusetts over whether its contracts constitute unlicensed gambling. The Commodity Futures Trading Commission's (CFTC) framework for permissible prediction market contracts in the U.S., especially around political events, continues to evolve. The BitGo-Susquehanna offering currently applies to listed contracts, which helps sidestep some of these regulatory edge cases while providing institutions a compliant entry point.
