Kalshi Expands Crypto Derivatives with Bitcoin-Backed Margin Loans

Kalshi is making significant strides in the crypto derivatives market by launching a new bitcoin-backed lending arrangement in collaboration with digital-asset custodian BitGo. This initiative aims to position Kalshi as a leading regulated platform for crypto perpetual futures in the U.S.

According to a report from Bloomberg, customers of Kalshi Prime, the company's U.S.-registered futures commission merchant, will soon have the ability to borrow against digital assets held at BitGo. These loans can be utilized to fund margin positions on perpetual futures traded on Kalshi’s main exchange. The loans will be issued by Kalshi Katalyst, a lending affiliate of Kalshi Prime, and secured against assets held at BitGo Bank & Trust.

Eligible collateral for these loans includes bitcoin, ethereum, and stablecoins compliant with the GENIUS Act, with plans for additional custodians to join Kalshi’s network in the future. Jeff Bandman, CEO of Kalshi Prime, noted that this product is tailored for crypto-native traders, including those active on unregulated offshore perpetual venues and large holders who prefer not to liquidate their bitcoin for trading.

This development comes on the heels of Webull's announcement that it will allow eligible U.S. customers to trade perpetual futures starting in November, utilizing Kalshi's infrastructure. The contracts will be available on KalshiEX LLC, Kalshi’s CFTC-regulated designated contract market, and will clear through Kalshi Klear LLC, its derivatives clearing organization. Initially, access will be limited to customers with approved futures trading accounts, with broader availability anticipated by the end of the year.

Kalshi's expansion into bitcoin-backed margin loans and partnerships with platforms like Webull highlights the growing interest in regulated crypto trading options amid increasing legal scrutiny, including recent lawsuits from various states regarding alleged illegal gambling activities.