BitGo Prime on Tuesday announced a partnership with Susquehanna Crypto to let big investors tap into over-the-counter (OTC) access to prediction markets from within BitGo’s platform. The service is built for hedge funds, family offices, and other wealthy investors who want to trade event-based contracts in a more professional setup.
According to the agreement, Susquehanna Crypto will provide liquidity, while BitGo will handle trades through its OTC desk and platform.
Stitching custody and trading for institutions
The new setup will let clients use crypto or stablecoins already held with BitGo as collateral. They do not need to sell assets first to raise cash for trades. That makes prediction markets easier for bigger investors to use.
BitGo said the new service is designed to fix a problem that has kept many large investors out of prediction markets. Interest in event-based trading has grown, but many institutions still lack one platform that could handle custody, collateral, and trade execution together.
BitGo said the partnership aims to close that gap with a setup that feels more familiar to professional investors.
Under the new setup, eligible clients can trade event contracts directly through BitGo instead of using retail-style platforms. The companies said the service follows standard derivatives market practices and uses industry documents for event contracts. That makes it appealing because large investors usually need a clear legal and trading structure before entering a new market.
Prediction markets let people trade on the outcome of future events. Contract prices usually show what traders believe is most likely to happen. These contracts can track sports, politics, weather, and even short-term crypto price moves.
BitGo sets $100K floor to attract institutional traders
BitGo’s Global Head of Trading, Matt Ballensweig, said prediction markets have become more relevant for price discovery around real-world events, but institutional access has remained limited.
“This offering is designed to give clients a more seamless way to access that liquidity through bilateral OTC execution and digital asset collateral frameworks built for institutional use – clients can post USD, stablecoins, BTC or other crypto as collateral to trade any listed contract for $100k or greater,” Ballensweig added.
Susquehanna Crypto CEO Chase Lax said prediction markets are becoming a real market for institutional investors. He said the partnership expands the firm’s work in the sector.
Both companies are sending a clear message that prediction markets are growing beyond small retail use and starting to attract serious institutional interest.
The launch also comes at a sensitive time for the prediction market sector in the United States. On Monday, lawmakers introduced a bipartisan bill targeting sports-related contracts. The bill aims to block sports betting and casino-style contracts on federally regulated prediction market platforms.
On 12 March, the CFTC also opened a public rulemaking process for prediction markets. That shows the sector is moving into a more serious regulatory phase.