Kalshi has introduced a bitcoin-backed lending arrangement with digital-asset custodian BitGo as Kalshi seeks to expand regulated U.S. crypto perpetual futures trading. Bloomberg reported Wednesday that Kalshi Prime clients will be able to borrow against digital assets custodied at BitGo to finance perpetual futures margin on Kalshi's main exchange. Kalshi Prime is Kalshi's U.S.-registered futures commission merchant.
The three-party arrangement provides for Kalshi Katalyst, Kalshi Prime's lending affiliate, to issue the loans. Assets custodied at BitGo Bank & Trust, BitGo's federally chartered trust bank, will secure the borrowing. Eligible collateral will comprise bitcoin, ethereum and stablecoins considered compliant with the GENIUS Act. Additional custodians are expected to enter Kalshi's network over time.
Kalshi Prime CEO Jeff Bandman said the product was designed for crypto-native traders, including participants on unregulated offshore perpetual futures venues. Bandman said the intended customers also include large bitcoin holders who prefer borrowing to selling bitcoin to finance futures positions. Bandman also cited unexpected business demand, including from Latin American companies that operate using U.S. dollar stablecoins.
Kalshi has acknowledged a structural disadvantage in this market segment against Polymarket, Kalshi's offshore, blockchain-based competitor. Polymarket has long served large crypto holders and trading firms that prefer retaining capital in digital assets. Kalshi and Polymarket have competed to develop perpetual futures offerings since the spring.
The BitGo arrangement followed Webull's Tuesday announcement by one day. Webull said eligible U.S. customers will be able to trade perpetual futures through Webull's platform starting in November. The initial offering will cover bitcoin and a small selection of other crypto assets. The distribution agreement will present Kalshi's perpetual contracts to Webull's customer base of more than 6 million.
The contracts will trade on KalshiEX LLC, Kalshi's designated contract market regulated by the Commodity Futures Trading Commission (CFTC). Kalshi Klear LLC, Kalshi's derivatives clearing organization, will clear the contracts. Initial access will require customers to have existing Webull Futures accounts with futures trading approval. Wider availability is expected before year-end. Webull Group President and U.S. CEO Anthony Denier said global perpetual futures volume exceeded $90 trillion in 2025. Denier argued that American investors should have access to perpetual futures through a regulated platform.
Kalshi obtained CFTC clearance in late May for the first U.S.-regulated bitcoin perpetual futures contract. Kalshi launched that contract in early June. Kalshi added perpetual futures on gold and silver in September. Kalshi introduced a US500 stock index perpetual futures contract earlier this month.
Kalshi's expansion coincides with increasing legal pressure from states. Utah became the latest state to sue Kalshi on Monday, alleging that Kalshi offers illegal sports gambling. New York brought a similar case against Polymarket last month.
Kalshi Launches Bitcoin-Backed Margin Loans for U.S. Perpetual Futures Trading
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Summary
Kalshi has launched bitcoin-backed margin loans in partnership with BitGo to boost U.S. perpetual futures trading. Kalshi Katalyst, the lending affiliate of Kalshi Prime, issues loans secured by assets held at BitGo Bank & Trust. Eligible collateral includes bitcoin, ethereum, and GENIUS Act-compliant stablecoins. Webull will offer perpetual futures to 6 million users starting in November. Kalshi secured CFTC approval for its first U.S.-regulated bitcoin perpetual futures contract in May 2026, as anticipation builds for spot bitcoin ETF approval.
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