BitGo and Kalshi Enable Traders to Use Crypto Collateral for Leveraged Perpetual Futures

BitGo and Kalshi Prime let eligible traders use crypto collateral for leveraged perpetual futures, unlocking liquidity without selling their crypto holdings.

Kalshi and BitGo Holdings have partnered to make crypto holdings more useful in regulated derivatives trading. The collaboration will enable eligible Kalshi Prime clients to post cryptocurrency as collateral for leveraged perpetual futures trades, according to a Bloomberg report Wednesday (Oct. 21). The move gives traders a way to unlock liquidity from their digital assets while maintaining exposure to their existing positions.

How the BitGo-Kalshi Partnership Works

Kalshi Prime is Kalshi’s U.S.-registered futures commission merchant. Through the new arrangement, its customers can borrow against digital assets held in custody at BitGo. Instead of selling Bitcoin or other supported cryptocurrencies to fund a trade, those assets can now serve as collateral for leveraged perpetual futures. BitGo’s role as custodian helps bridge the gap between the traditional futures market and the crypto ecosystem.

Why This Matters for Crypto Traders

For many traders, the biggest challenge is choosing between holding assets long term and deploying capital into new opportunities. This partnership aims to remove that trade-off. By using eligible crypto as collateral, traders can:

• Keep their digital asset holdings intact
• Gain access to additional trading power
• Participate in leveraged perpetual futures without needing to liquidate positions

This can be especially useful for institutional clients and active traders who want to manage risk more flexibly. It also reflects a growing trend among regulated platforms to accept digital assets as a legitimate form of collateral.

A Bridge Between Custody and Derivatives

The integration of BitGo’s digital asset infrastructure with Kalshi Prime’s futures platform shows how crypto can be woven into traditional financial services. For Kalshi, the move expands its offerings beyond event contracts. For BitGo, it opens another path for crypto assets to be used in institutional-grade trading.

Leveraged perpetual futures are a popular derivative product, and making them accessible with crypto collateral could attract more users to Kalshi Prime. Traders no longer have to exit their holdings to pursue leverage. Instead, their crypto works alongside them, unlocking new strategies in a regulated environment.

As the partnership develops, more eligible cryptocurrencies may be added, and other platforms may look for similar ways to integrate digital assets into their collateral frameworks. For now, Kalshi Prime clients who hold crypto at BitGo can take advantage of a more capital-efficient way to trade.

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