BitGo and Susquehanna Crypto have launched an institutional OTC service giving eligible clients access to prediction market contracts, the companies announced Tuesday, filling a gap that has kept many professional investors on the sidelines of one of finance's fastest-growing asset classes.
The offering targets hedge funds, family offices, and ultra-high-net-worth individuals who have wanted exposure to event-driven markets but lacked a framework built to institutional standards. Through the arrangement, eligible BitGo clients can post USD, stablecoins, Bitcoin, or other crypto as collateral to trade any listed prediction market contract in sizes of $100,000 or greater, without liquidating existing positions or accessing consumer-facing platforms. Susquehanna Crypto provides the liquidity. Trades are documented under standard derivatives documentation, including binary option and event contract confirmations — a structure deliberately modelled on established derivatives market practice.
The infrastructure gap the deal addresses is real. Until now, institutions wanting to access prediction markets have faced a choice between routing through retail interfaces built for individual users, or building bespoke bilateral arrangements from scratch. Neither is practical at institutional scale, and neither provides the custody, collateral management, and execution workflow that compliance and risk teams require.
Prediction markets are in the middle of a rapid institutionalization. Kalshi and Polymarket are each exploring fundraising rounds that could value them at approximately $20 billion — roughly double their late 2025 valuations — while Kalshi has already reported an annualized revenue run rate of approximately $1.5 billion. A new venture fund, 5c(c) Capital, launched this week with backing from both CEOs and investors including Marc Andreessen and Ribbit Capital founder Micky Malka, targeting prediction market infrastructure startups. Coinbase, Robinhood, and Truth Social have all entered the space, and Nasdaq and Cboe have signalled interest in offering binary event contracts on traditional markets.
Susquehanna, a Philadelphia-based proprietary trading firm with deep roots in options and derivatives, has been active in crypto markets for several years and brings exchange-grade market-making expertise to the liquidity side of the arrangement. BitGo, which listed on the NYSE earlier this year, provides the custody and collateral infrastructure underpinning the deal.
The broader institutional adoption picture remains constrained by regulatory uncertainty. Kalshi is currently fighting state-level challenges in Nevada and Massachusetts over whether its contracts constitute unlicensed gambling, and the CFTC's framework for what prediction market contracts are permissible in the US — particularly around political and geopolitical events — continues to evolve. For now, the BitGo-Susquehanna offering applies to listed contracts, sidestepping some of those edge cases while giving institutions a credible entry point into the category.
