US-based prediction markets platform Kalshi will allow certain clients to post cryptocurrencies as collateral for leveraged perpetual futures positions under a new arrangement with digital asset custodian BitGo. Customers of Kalshi Prime, the company’s US-registered futures commission merchant (FCM), will be able to borrow against digital assets held at BitGo and use the proceeds to fund margin positions on futures traded on Kalshi’s main exchange. 

How the tri-party structure works

The arrangement uses a tri-party collateral management model, which typically involves three parties: a borrower, a lender, and an agent that handles the collateral. Loans will be provided by Kalshi Katalyst, a lending affiliate of Kalshi Prime, and…