BitGo and Susquehanna Launch Institutional OTC Platform for Prediction Markets
In a significant move to bridge the gap between traditional finance and the burgeoning world of event-driven trading, BitGo Prime and Susquehanna Crypto have jointly launched a new over-the-counter (OTC) offering. This service provides eligible institutional clients with direct access to listed prediction markets, allowing them to use cryptocurrency or stablecoin collateral already held within BitGo’s secure custody platform.
The product is specifically designed for hedge funds, family offices, and ultra-high-net-worth individuals. Susquehanna Crypto, a subsidiary of the multinational financial firm Susquehanna International Group, is providing the liquidity for these trades. By enabling bilateral execution, the platform eliminates the need for clients to move assets through retail-facing interfaces or liquidate their digital holdings to fund positions. Trades can be settled using collateral posted in U.S. dollars, stablecoins, Bitcoin, or other supported cryptocurrencies.
Targeting the Institutional Market with a High Minimum
A key differentiator of this offering is its scale. BitGo has set a minimum trade size of $100,000, a threshold that firmly positions the service for larger, sophisticated market participants rather than retail traders. This approach leverages standard derivatives documentation and integrated collateral management, mirroring the operational frameworks familiar to professional trading firms in conventional markets. The structure aims to provide the compliance, security, and operational efficiency that institutions demand.
Strategic Timing Post-IPO and Amid Industry Shifts
The launch comes just two months after BitGo’s initial public offering on the New York Stock Exchange. The company began trading under the ticker BTGO on January 22, 2024, after pricing its IPO at $18 per share. At that pricing, Reuters reported a market valuation of approximately $2.08 billion. Concurrently, BitGo converted its state-level trust bank charter into a national bank charter, a strategic regulatory move that strengthens its unified oversight and operational footprint across the United States.
This product expansion aligns with a broader industry trend in 2024 where prediction market platforms are actively building institutional-grade infrastructure. For instance, Kalshi—a CFTC-regulated prediction market—announced a partnership with electronic trading platform Tradeweb in February to broaden its institutional reach. Barron’s also reported that Kalshi is collaborating with FIS, a major financial technology provider, on clearing solutions tailored for Wall Street clients.
Navigating an Evolving Regulatory Environment
The institutional push into prediction markets is occurring alongside heightened regulatory and legislative scrutiny. As reported by Reuters on March 23, 2024, Kalshi proactively implemented measures to bar politicians and athletes from trading in markets where they might have an informational advantage. Furthermore, a bipartisan bill introduced in the U.S. Congress this week seeks to prohibit sports-related contracts and casino-style games on CFTC-regulated prediction market platforms, as covered by the Associated Press and The Wall Street Journal.
Against this complex backdrop, BitGo and Susquehanna are wagering on strong demand for a “cleaner” institutional wrapper. Their solution emphasizes bilateral contracts, familiar collateral management, and the regulatory clarity afforded by operating within a chartered, U.S.-based trust bank. By packaging event contracts in a format that resembles traditional derivatives, the partners aim to lower the operational and compliance barriers for institutions seeking exposure to this alternative asset class.
Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.
