Keep the Coins, Trade the Futures: Kalshi and BitGo Launch Crypto-Backed Loans

Kalshi has partnered with BitGo to offer Bitcoin ($BTC)- and Ethereum ($ETH)-backed loans, enabling eligible institutional traders to fund leveraged perpetual futures positions while retaining ownership of their existing cryptocurrency holdings.

Under the arrangement, Kalshi Katalyst, the lending affiliate of Kalshi Prime, will issue the crypto-backed loans. BitGo Bank & Trust will act as the middleman in a three-party arrangement to keep the staked digital assets, with the agreement based on BitGo’s current institutional cryptocurrency custody services.

According to Kalshi Prime CEO Jeff Bandman, eligible collateral includes Bitcoin, Ethereum, and GENIUS Act-compliant stablecoins. The service is aimed at investors seeking futures exposure without selling their existing Bitcoin, Ether, or compliant stablecoin holdings, allowing them to hold their cryptocurrency while borrowing for a leveraged position on the exchange.

Kalshi plans to add more custody partners as its lending network grows. The partnership is intended for institutional investors who want to use their current digital assets as collateral rather than liquidate them to pursue leveraged perpetual futures trading.