Kalshi Prime to Accept BitGo-Held Crypto as Perpetual Futures Margin Collateral

Borrowing against crypto for futures margin

Kalshi Prime is building a route for clients to trade perpetual futures without first selling their crypto. Under a new lending arrangement, clients can borrow against Bitcoin, Ether and eligible stablecoins held at BitGo, then use the cash for margin on contracts listed on Kalshi’s exchange, Bloomberg reported Wednesday, citing a company statement and an interview with Kalshi Prime CEO Jeff Bandman. In practical terms, the service connects assets a client already owns to a separate trading activity, with a loan providing the dollars needed for margin.

That structure may appeal to traders who want to keep their crypto positions while accessing dollars for derivatives activity. Selling an asset to fund a trade can change a portfolio’s exposure; borrowing offers another option, though it also means taking on a loan secured by that asset. “What we wanted to do was make it possible for customers to stay in crypto,” Bandman reportedly told Bloomberg. The design makes a clear pitch to holders who'd rather keep their exposure than convert it to cash before trading.

Collateral stays with BitGo

The program uses three parties: the client borrows, Kalshi Prime lending affiliate Kalshi Katalyst provides the loan, and BitGo Bank & Trust holds the pledged assets. Eligible collateral includes Bitcoin, Ether and stablecoins that meet the requirements of the GENIUS Act, the US stablecoin law. This division gives the arrangement a distinct custody role: BitGo holds the assets while Kalshi Katalyst supplies the credit. Bloomberg reported that additional custodians may join later, which could broaden the available custody options if that expansion happens.

Bandman initially had crypto-native traders in mind, including people already using offshore perpetual futures venues. He also described potential demand from investors reluctant to sell Bitcoin and a Latin American business that operates with dollar stablecoins. Those examples point to different reasons for borrowing: a trader might want funding for a position, while a business might want access to dollars without drawing down its stablecoin holdings. “That was kind of the audience that I was envisioning, but now that we’ve built it, what’s fascinating is hearing these other use cases come out of the woodwork,” he said.

Crypto trading firms and large holders, or “whales,” could also use the service, Bandman said. The range of examples suggests the product could serve both active traders and businesses seeking dollar liquidity while retaining stablecoin balances. But an audience list isn't evidence of demand at scale; the article doesn't provide borrowing terms, loan limits or details about how collateral would be handled if its value changed. For clients, those mechanics will shape whether the product is useful beyond the basic appeal of borrowing without selling.

A broader push into perpetuals

Kalshi began listing perpetual futures—contracts without an expiration date—earlier this year. Its offerings include contracts linked to crypto, gold and silver. The lending arrangement complements those listings by addressing a basic requirement of leveraged trading: clients need collateral or funds to meet margin requirements. That puts financing alongside the contracts themselves as part of Kalshi’s effort to build out its perpetual futures business.

The company has also sought approval for perpetual-style contracts tied to oil and US stocks. In September, its clearinghouse, Kalshi Klear, applied to the Commodity Futures Trading Commission to offer margin on certain event contracts. Taken together, these moves show the company working on both the range of products it offers and the ways clients could fund positions. They don't, by themselves, establish how quickly those products will expand or how much clients will use them.

Crypto-backed borrowing adds a funding option to that expanding product set. Its practical reach will depend on which assets qualify, how many custodians join and whether clients find the structure useful for keeping positions open while meeting margin needs. The source reports the arrangement’s basic structure, but leaves open details that matter to a prospective borrower, including the cost and conditions of credit. That gap makes it difficult to judge the service on more than its intended use case.

What the arrangement could signal

This is more significant than it looks: Kalshi is tying crypto custody and lending to access to derivatives on its exchange. That could make the platform more useful to clients who already hold digital assets, while also making the experience depend on coordination among the exchange, its lending affiliate and the custodian. Here's the thing: adding a loan can reduce the friction of funding a trade, but it doesn't remove the financial exposure that comes with a leveraged position.

If you're working in this space, the central question is whether clients value keeping their assets in place enough to borrow against them, given the loan’s terms and the collateral requirements. The service's reach will also depend on what counts as eligible stablecoin collateral and whether more custodians join. And yet, the reported examples suggest interest could extend beyond traders already familiar with perpetual futures. The difference between an appealing product design and a widely used service will come down to those practical details. Still, early signs of interest. That’s the test ahead.

Related Listen: Why Kalshi Chose Crypto Perps for Its First Move Beyond Prediction Markets

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