BitGo Prime (BTGO) and Susquehanna Crypto announced their partnership to provide institutional clients with over-the-counter (OTC) access to market prediction trades, using digital assets held on the BitGo platform as collateral.
The offering targets hedge funds, family offices and high-net-worth investors, allowing them to enter into event-driven contracts without relying on retail platforms or converting their crypto holdings to cash, the companies said in a press release Tuesday.
Liquidity will be provided by Susquehanna Crypto, with trades executed bilaterally through BitGo’s OTC desk. The companies said the transactions would follow standard derivatives documentation frameworks. Investors use OTC desks primarily to trade large or complex positions without disrupting the market or exposing their strategy.
The structure reflects the way institutions already trade traditional derivatives, in which assets remain in custody and positions are collateralized rather than fully funded in advance. In contrast, most prediction market activity today takes place on retail platforms that require pre-funding and offer limited integration with institutional custody systems.
Institutional investors are increasingly using prediction markets as a hedging tool, taking positions on events, such as elections, political decisions or macroeconomic changes, to offset the risks of their broader portfolios. By valuing discrete, real events, these markets offer a way to hedge extreme risks that are difficult to capture with traditional instruments such as stocks, rates or options.
Prediction markets have seen rapid growth, with trading volumes surpassing an estimated $40-$45 billion in 2025, a multi-fold increase year-over-year as retail participation has increased and platforms like Polymarket and Kalshi have gained traction.
At the same time, institutional interest has begun to grow, with hedge funds and banks increasingly using these markets to determine prices based on political and economic events, although infrastructure and regulatory uncertainty continues to limit broader adoption.
Regulatory fragmentation has also slowed adoption. In the United States, platforms like Kalshi operate under the supervision of the Commodity Futures Trading Commission, while others, like Polymarket, remain offshore, limiting access to domestic institutional capital. This has led many companies to explore alternative structures that are better aligned with existing compliance frameworks.
The companies said the new offering is designed to fill these gaps by combining custody, collateral management and OTC execution into a single workflow. By allowing investors to trade for crypto collateral without moving assets out of the platform, the model aims to bring prediction markets closer to the infrastructure already used by institutions in other asset classes.
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