BitGo Partners Susquehanna for Prediction Market OTC Trades

TLDR

• BitGo and Susquehanna Crypto launched an institutional OTC service for prediction market trades.
• The platform allows clients to use digital assets held on BitGo as collateral.
• Susquehanna Crypto will provide liquidity while BitGo’s OTC desk executes bilateral trades.
• The service targets hedge funds, family offices, and high-net-worth investors.
• The companies said trades will follow standard derivatives documentation frameworks.

BitGo and Susquehanna Crypto have launched an institutional service for over-the-counter prediction market trades. The companies will allow clients to use digital assets held on BitGo as collateral. The firms said the structure mirrors traditional derivatives trading models.

BitGo Expands Institutional OTC Infrastructure

BitGo confirmed it will provide custody and collateral management for institutional prediction market trades. Susquehanna Crypto will supply liquidity, while BitGo’s OTC desk will execute bilateral transactions. The companies stated that trades will follow standard derivatives documentation frameworks.

The service targets hedge funds, family offices, and high-net-worth investors. Clients can trade event-driven contracts without converting crypto holdings into cash. The firms said this approach keeps assets on-platform while supporting collateralized positions.

They explained that institutions often use OTC desks for large or complex trades. OTC desks help clients avoid market disruption and protect trading strategies. Therefore, the new workflow aligns with established institutional trading practices.

Susquehanna Crypto Provides Liquidity for Event Contracts

Susquehanna Crypto will act as the liquidity provider for these contracts. Trades will focus on event outcomes such as elections and policy decisions. The companies stated that institutions increasingly use prediction markets for hedging purposes.

The structure allows investors to post crypto collateral instead of pre-funding positions. In contrast, many retail platforms require full upfront funding. The firms said the new model integrates custody, collateral management, and execution in one process.

Prediction markets recorded trading volumes between $40 billion and $45 billion in 2025. Retail participation increased, while platforms such as Polymarket and Kalshi expanded activity. However, most retail platforms offer limited integration with institutional custody systems.

In the United States, Kalshi operates under Commodity Futures Trading Commission oversight. Meanwhile, Polymarket operates offshore, which limits access for domestic institutional capital. Regulatory fragmentation has slowed broader institutional participation in prediction markets.

The companies said their offering addresses these structural gaps. By keeping digital assets in custody, they reduce operational friction. They also align the workflow with systems institutions already use for derivatives.

A joint press release outlined the operational structure. The firms stated, “The model combines custody, collateral management, and OTC execution into a single workflow.” They added that the structure supports event-based contracts using crypto collateral.

Institutional investors have begun using prediction markets for price discovery around political and economic events. Hedge funds and banks seek tools to hedge tail risks tied to discrete outcomes. The companies confirmed that trades will remain bilateral and privately negotiated.

BitGo and Susquehanna Crypto announced the partnership on Tuesday. They confirmed that clients can transact directly through BitGo’s OTC desk. The companies said the service is now available to eligible institutional participants.

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