BitGo and Susquehanna Crypto have teamed up to give institutional investors new access to prediction markets using crypto collateral.
Key Takeaways
- BitGo and Susquehanna Crypto launched OTC access to prediction markets for institutional investors.
- Investors can trade using crypto, stablecoins, or USD held in custody without converting to cash.
- The service targets hedge funds, family offices, and high net worth clients with trades starting at $100,000.
- Growing regulatory pressure in the United States continues to shape how prediction markets evolve.
What Happened?
BitGo Prime and Susquehanna Crypto announced a partnership to offer institutional clients over the counter access to prediction market trading. The service allows large investors to execute event based contracts using digital assets already held on BitGo’s platform.
The offering is designed to remove friction for institutions by combining custody, collateral management, and execution into a single workflow.
97% chance this changes how institutions access prediction markets.
— BitGo (@BitGo) March 24, 2026
BitGo’s OTC desk now offers event-linked derivatives: bilateral execution, crypto or stablecoin collateral, and liquidity backed by Susquehanna Crypto.
Back your thesis.
Call your shot.
Learn more:… pic.twitter.com/k61ckXqheI
Institutional Access to Prediction Markets Expands
The partnership introduces a new way for institutions to trade event driven contracts without relying on retail platforms. Instead of pre funding accounts or moving assets across platforms, clients can use Bitcoin, stablecoins, or USD already held in custody as collateral.
Trades are executed bilaterally through BitGo’s OTC desk, while Susquehanna Crypto provides liquidity. The setup mirrors traditional derivatives markets, where positions are collateralized rather than fully funded upfront.
Key features of the offering include:
- Minimum trade size of $100,000, targeting large investors.
- Derivatives style documentation, aligning with institutional standards.
- Bilateral execution, offering discretion and flexibility.
- Integrated custody and trading workflow, reducing operational complexity.
This structure is particularly appealing for institutional desks that require efficient capital use and risk management tools.
Why Prediction Markets Are Gaining Attention?
Prediction markets allow participants to trade contracts tied to real world outcomes, such as elections, economic data, sports events, or even Bitcoin price movements. Prices in these markets reflect the perceived probability of specific outcomes.
In recent years, these markets have grown rapidly, with trading volumes reaching between $40 billion and $45 billion in 2025. Platforms like Polymarket and Kalshi have driven much of this growth, especially among retail users.
Institutions are now starting to explore prediction markets for:
- Hedging event driven risks in broader portfolios.
- Price discovery around political and economic outcomes.
- Accessing alternative trading strategies not available in traditional markets.
Despite this interest, adoption has been limited due to gaps in custody, collateral management, and execution infrastructure, which this new offering aims to solve.
Regulatory Pressure Builds in the United States
The launch comes at a time when prediction markets face increasing regulatory scrutiny in the United States.
Several states have taken action against platforms like Kalshi:
- A Nevada court issued a temporary ban citing unlicensed betting concerns.
- Arizona filed criminal charges related to election and sports contracts.
- States like Utah and Pennsylvania are considering legislation to classify or regulate these markets under gaming laws.
However, not all rulings have gone against the industry. A federal judge in Tennessee blocked a state level attempt to halt operations, stating that such contracts fall under federal oversight through the Commodity Futures Trading Commission.
At the federal level, the CFTC has also requested public input on how prediction markets should be regulated, signaling that a broader framework may be on the way.
A Step Toward Institutional Normalization
The BitGo and Susquehanna partnership reflects a broader trend of bringing prediction markets closer to institutional standards. By integrating custody, collateral, and execution, the model removes key barriers that previously kept large investors on the sidelines.
Another important advantage is capital efficiency. Investors can maintain their existing crypto positions while using them as collateral, avoiding the need to liquidate assets to participate in new trades.
This shift could position prediction markets as a more mainstream financial tool, especially for institutions seeking exposure to event driven risks.
CoinLaw’s Takeaway
I see this move as a turning point for prediction markets. In my experience, institutions do not enter a space until the infrastructure feels familiar and reliable. That is exactly what BitGo and Susquehanna are building here.
I found the biggest change is not just access, but how seamlessly it fits into existing trading workflows. If this model gains traction, prediction markets could move from a niche experiment to a serious tool for hedging and price discovery.
That said, regulation remains the biggest question. Until there is clarity in the United States, growth may stay uneven. Still, this feels like a strong step toward institutional adoption.
