Kalshi will support collateralized borrowing of cryptocurrency assets for perpetual futures margin

According to Bloomberg, the prediction market platform Kalshi has reached a new arrangement with the cryptocurrency custody institution BitGo, which will allow certain clients to borrow against their custodied cryptocurrency assets and use the loan funds as margin for leveraged perpetual futures trading on the Kalshi exchange.

This arrangement is aimed at clients of Kalshi Prime, a futures brokerage registered in the United States under Kalshi, and employs a tri-party collateral management structure. Loans are provided by its affiliated lending company Kalshi Katalyst, with the collateral assets held at BitGo Bank & Trust. Eligible collateral assets include Bitcoin, Ethereum, and stablecoins deemed compliant with the GENIUS Act, with plans to integrate additional custody institutions in the future.

Kalshi Prime CEO Jeff Bandman stated that this arrangement aims to allow clients to participate in trading without having to exit their cryptocurrency holdings, potentially attracting crypto-native trading firms and whales holding large amounts of digital assets.