BitGo, Susquehanna bring OTC prediction markets to institutions

• BitGo Prime has partnered with Susquehanna Crypto to provide institutional clients with over-the-counter (OTC) access to prediction markets.
• Institutional traders can utilize Bitcoin, stablecoins, and other digital assets as collateral for trades of $100,000 or more.
• The move follows BitGo's recent public debut on January 22, where it raised $212.8 million at a valuation exceeding $2 billion.

Institutional Access to Prediction Markets

BitGo Prime is expanding its service suite through a strategic partnership with Susquehanna Crypto, the digital asset arm of the quantitative trading powerhouse Susquehanna. This collaboration aims to bridge the gap for institutional participants—such as hedge funds and family offices—that require sophisticated infrastructure for prediction market participation. Unlike retail platforms, this service provides integrated custody, collateral management, and bilateral execution capabilities.

Chase Lax, CEO of Susquehanna Crypto, noted that prediction markets have evolved into a legitimate institutional asset class. He emphasized their utility as instruments for price discovery regarding global events, framing the partnership as a natural progression of Susquehanna's long-standing involvement in the sector.

Collateral Management and Execution

A primary feature of this new offering is the ability for clients to maintain their digital asset positions while participating in the market. By allowing assets like Bitcoin, USD, and various stablecoins to serve as collateral, institutions avoid the need to liquidate holdings. According to Matt Ballensweig, BitGo’s Global Head of Trading, the service is designed for scale, with a minimum contract size of $100,000.

Key aspects of the trading framework include:

• Direct access via the BitGo trading interface.
• Execution powered by Susquehanna Crypto’s deep liquidity.
• Flexible collateral options to prevent unnecessary asset liquidation.

Market Growth and Regulatory Environment

The prediction market landscape has seen significant momentum, with major platforms like Polymarket and Kalshi reporting consistent volume growth since mid-2025. These platforms have also secured partnerships with major entertainment and sports franchises to broaden their reach. Market makers like Susquehanna play a critical role in this ecosystem by providing continuous quotes on "Yes/No" contracts, which minimizes slippage for large traders.

However, the sector continues to face a complex regulatory environment. While the Commodity Futures Trading Commission (CFTC) has asserted jurisdiction over event contracts, various state-level authorities have raised concerns regarding local gambling and gaming regulations. Despite these challenges, the involvement of major market makers—including Susquehanna’s status as a designated market maker for Kalshi since 2024—signals continued institutional confidence in the asset class.