BitGo, the digital-asset custody and trading platform, is partnering with Susquehanna Crypto to offer institutional clients over-the-counter access to prediction markets, enabling trades in event-linked contracts using cryptocurrency or stablecoins held in custody.
According to the companies’ Tuesday announcement, orders will be routed via BitGo’s platform while Susquehanna supplies liquidity. The arrangement lets hedge funds, family offices and other large investors execute bilateral trades without moving assets off the platform or converting holdings—such as Bitcoin or stablecoins—into cash.
Positions will be collateralized with crypto and documented using derivatives-style agreements. Minimum trade sizes start at $100,000.
Examples of event contract listings on Polymarket. Source: Polymarket
Prediction markets let participants buy and sell contracts tied to real-world outcomes, with prices reflecting the market’s implied probability for an event. Contracts can cover sports, geopolitical developments, short-term Bitcoin price moves, weather and other outcomes.
BitGo said institutional participation has been limited by gaps in custody, collateral management and execution infrastructure, and this offering aims to address those hurdles.
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Prediction markets face growing regulatory pressure in US
The launch comes amid mounting legal challenges in the United States. At least 11 states have taken action against platforms such as Kalshi, alleging they operate as unlicensed gambling venues.
In Nevada, a state court temporarily barred Kalshi from operating on March 20 after gaming regulators argued the platform offered unlicensed betting on event outcomes; a federal appeals court denied Kalshi’s emergency request to pause the case. In Arizona, authorities filed criminal charges against entities tied to Kalshi, alleging illegal wagering on elections and sports. Kalshi co-founder and CEO Tarek Mansour called the charges a “total overstep,” asserting the platform’s activity is not gambling and accusing the state of trying to circumvent proper judicial process.
Lawmakers in other states are moving to fold prediction markets into existing gaming frameworks. Proposed Utah legislation would classify certain event contracts as gambling, while Pennsylvania lawmakers are preparing a bill to place the sector under the state’s gaming regulator and impose a 34% tax on revenue.
Not every enforcement effort has succeeded. In February, a federal judge in Tennessee blocked the state’s attempt to halt Kalshi’s operations, finding that the Commodity Exchange Act covers event contracts and that oversight lies with the Commodity Futures Trading Commission (CFTC), not individual states.
Prediction markets have also drawn scrutiny over potential insider trading after some well-timed bets appeared to anticipate major events. In response, Kalshi and Polymarket introduced new restrictions to limit trading on non-public information and to bar participants with direct influence over outcomes from trading.
At the federal level, regulators are considering policy options. On March 12 the CFTC published an advance notice of proposed rulemaking seeking public input on how prediction-market contracts should be regulated.
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