Key Highlights
- BitGo Prime and Susquehanna Crypto are offering OTC prediction market trading for institutional investors.
- Investors can use crypto or stablecoins held on BitGo’s platform as collateral, letting them trade without moving funds off-platform.
BitGo, a digital asset custodian, together with Susquehanna Crypto, announced on Tuesday that they are working together to give institutional investors a new way to trade prediction markets.
According to the joint announcement, the service is aimed at hedge funds, family offices, and very wealthy individuals. These investors will be able to use cryptocurrency or stablecoins already held on BitGo’s platform as a kind of collateral to trade contracts about events without moving their money off the platform.
How the trades work
The trades will happen directly through BitGo’s over-the-counter (OTC) desk, meaning buyers and sellers make deals directly with each other instead of using a public exchange, so they can handle trades without affecting the prices in the market.
According to the announcement, Susquehanna Crypto will provide the liquidity needed to make these trades, and all trades will follow standard derivative rules. The trades are set up in a way that is similar to traditional derivatives trading. Investors do not have to pay the full amount of the contract upfront. Instead, they post collateral to secure the trade.
Most prediction market trading today happens on platforms for regular users, which usually need accounts funded in advance and separate wallets. This new system lets institutions keep their digital assets in BitGo custody while trading.
“Prediction markets have developed into an increasingly relevant venue for price discovery around real-world events, but institutional access has remained limited,” said Matt Ballensweig, Global Head of Trading at BitGo. He added that “This offering is designed to give clients a more seamless way to access that liquidity through bilateral OTC execution and digital asset collateral frameworks built for institutional use.”
What this means for institutional traders
The prediction market is growing at a fast rate, with nearly $44 billion generated in trading volume in 2025. This is a lot compared to under $16 billion from the previous year, according to a recent report from Gambling Insider.
The market allows investors to place trades on the likelihood of events, such as elections and more. Institutional investors can use these markets to protect their investment from risks that are difficult to cover with regular stock, bonds, or options.
The partnership between BitGo and Susquehanna Crypto is designed to let clients trade with $100,000 or more using cryptocurrency as collateral. With this, wealthy investors can join in the prediction market trend and diversify their portfolios by adding event-driven contracts.
Also Read: Gate Integrates Polymarket for Global Prediction Trading
