BitGo Prime and Susquehanna Crypto have partnered to offer institutional clients over-the-counter (OTC) access to prediction markets, marking a significant step in bridging traditional finance and crypto-based event trading.
The new service allows hedge funds, family offices, and high-net-worth investors to trade event-driven contracts using digital assets held on BitGo’s platform as collateral. This removes the need to convert crypto into cash or rely on retail-focused platforms, making the process more efficient and aligned with institutional trading practices.
Liquidity for these trades will be provided by Susquehanna Crypto, while execution will occur through BitGo’s OTC desk. The structure mirrors traditional derivatives markets, where positions are collateralized rather than fully funded upfront, offering flexibility and capital efficiency to large investors.
Prediction markets, which allow users to bet on outcomes such as elections, policy decisions, or economic shifts, have seen rapid growth. Trading volumes reached around $40–$45 billion in 2025, driven largely by retail participation on platforms like Polymarket and Kalshi.
Institutional interest is now catching up, as these markets provide a unique way to hedge risks that are difficult to manage with traditional financial instruments. By pricing real-world events, investors can better prepare for unexpected economic or political developments.
However, regulatory fragmentation remains a key challenge. While some platforms operate under official oversight, others remain offshore, limiting access for institutional capital. This has pushed companies like BitGo and Susquehanna Crypto to develop compliant, integrated solutions that fit within existing financial frameworks.
The new offering aims to solve these issues by combining custody, collateral management, and OTC execution into a single workflow. As institutional adoption grows, this model could help prediction markets evolve into a more mature and widely used financial tool.
