Prediction markets just got their prime brokerage moment. BitGo Prime and Susquehanna Crypto launched an OTC offering on Tuesday that allows institutional clients to trade event contracts using digital assets held in BitGo’s custody as collateral, eliminating the need to liquidate crypto positions to participate. Trades require a $100,000 minimum and will be executed bilaterally through BitGo’s OTC desk with liquidity provided by Susquehanna.

The structure mirrors how institutions already trade traditional derivatives: assets stay in custody, positions are collateralized rather than fully funded upfront. Clients can post stablecoins, bitcoin, or U.S. dollars. The offering targets hedge funds, family offices, and ultra-high-net-worth investors who have largely watched from the sidelines as prediction market volume topped $44 billion in 2025, up from under $16 billion the prior year.

This story is an excerpt from the Unchained Daily newsletter.

The partnership carries weight because of who is behind it. Susquehanna International Group is one of the largest quantitative trading firms in the world, and its crypto unit became the first designated market maker on Kalshi in 2024. BitGo went public via IPO in January and raised $212.8 million at a valuation above $2 billion, bringing institutional custody infrastructure that prediction market platforms themselves lack.

The timing aligns with a broader push to professionalize the sector. Kalshi and Polymarket both rolled out new compliance and insider trading controls this week, and CFTC Commissioner Michael Selig has backed the industry’s legitimacy. The missing piece has been infrastructure that connects custody, collateral, and execution in a single workflow. BitGo and Susquehanna are making the first serious attempt to fill that gap.