BitGo, the institutional digital-asset custody and trading platform, has partnered with Susquehanna Crypto to give large investors over-the-counter access to prediction markets using crypto held in custody. Under the arrangement, BitGo will route orders through its platform while Susquehanna supplies the liquidity, enabling hedge funds, family offices and other institutions to execute bilateral, off-exchange trades without moving assets off custody or converting holdings to fiat. Trades will be collateralized with crypto and governed by derivatives-style documentation; minimum trade sizes start at $100,000.
Prediction markets allow participants to buy and sell contracts tied to real-world outcomes, with market prices reflecting implied probabilities. Contracts can cover sports, elections and geopolitical events, short-term Bitcoin moves, weather outcomes and other contingencies. By permitting institutions to use Bitcoin or stablecoins as posted collateral, the BitGo–Susquehanna offering is designed to close gaps that have limited institutional participation—namely custody, collateral management and execution infrastructure.
The launch arrives against a backdrop of growing regulatory scrutiny 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 on March 20 after gaming regulators challenged its operations; a federal appeals court denied Kalshi’s emergency request to pause the case. Arizona authorities have brought criminal charges against entities tied to Kalshi, accusing them of illegal wagering on elections and sports; Kalshi’s leadership has disputed those claims and characterized the actions as overreach.
Some state lawmakers are seeking to fold prediction markets into existing gaming regimes: proposed Utah legislation would classify certain event contracts as gambling, while Pennsylvania lawmakers have discussed placing the sector under the state gaming regulator and imposing steep taxes on revenue. Not all enforcement efforts have succeeded—earlier this year a federal judge in Tennessee blocked the state’s attempt to halt Kalshi, finding that the Commodity Exchange Act governs event contracts and places oversight with the CFTC rather than individual states.
Prediction markets have also faced concerns about trades that appear to anticipate nonpublic information. In response, platforms including Kalshi and Polymarket have introduced trading restrictions to limit activity by those with direct influence over outcomes and to curb trading on material nonpublic information. At the federal level, the Commodity Futures Trading Commission issued an advance notice of proposed rulemaking on March 12 seeking public input on how prediction-market contracts should be regulated.
BitGo and Susquehanna’s product aims to make it easier for institutional crypto holders to access prediction markets while keeping assets in custody and using familiar collateral frameworks. But institutions considering participation will need to weigh the operational benefits against ongoing legal and regulatory uncertainty.