Bitgo Enables $100K+ Prediction Market Trades via OTC Desk
The partnership, announced Tuesday in New York and shared with Bitcoin.com News, connects Bitgo Prime’s over-the-counter (OTC) desk with liquidity provided by Susquehanna Crypto, creating what the firms describe as an institutional-grade framework for trading event-driven contracts.
At its core, the offering allows hedge funds, family offices, and ultra-high-net-worth individuals to use crypto or stablecoin collateral already held within Bitgo’s platform to access prediction market liquidity.
That detail matters. Until now, institutions interested in prediction markets often had to route through retail interfaces or unwind digital asset positions to fund trades—an awkward detour for firms managing large, structured portfolios.
The new setup keeps those positions intact. Trades are executed bilaterally with Bitgo, with Susquehanna Crypto supporting liquidity across reasonably liquid event contracts, typically sized at $100,000 or more.
Prediction markets have quietly become a go-to venue for pricing the odds of real-world events—from elections to economic outcomes—yet institutional participation has lagged due to missing infrastructure around custody, collateral, and execution.
This partnership aims to plug that gap by combining Bitgo’s custody and trading stack with Susquehanna Crypto’s market-making capabilities, offering a workflow that mirrors traditional derivatives markets.
Trades are structured using standard derivatives documentation, including binary option and event contract confirmations, aligning the process with familiar institutional risk management and onboarding practices.
Matt Ballensweig, Bitgo’s global head of trading, said prediction markets have grown into a relevant tool for price discovery but lacked seamless institutional access.
“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.
Chase Lax, CEO of Susquehanna Crypto, framed the move as a natural extension of the firm’s work in event-driven markets, adding that prediction markets are increasingly being treated as a legitimate institutional asset class.
The rollout reflects a broader shift: prediction markets are no longer just retail playgrounds but are edging closer to the infrastructure standards expected by professional trading firms.
For institutions that prefer not to click through consumer apps—or liquidate positions just to place a bet on macro outcomes—the message is straightforward: stay in your lane, keep your collateral, and trade the odds anyway.
FAQ 🔎
- What did Bitgo and Susquehanna Crypto launch?
They launched an OTC framework that lets institutions trade prediction markets using crypto or stablecoin collateral. - Who can access the service?
Eligible institutional clients such as hedge funds, family offices, and high-net-worth investors. - How are trades executed?
Trades are executed bilaterally through Bitgo’s OTC desk using standard derivatives-style documentation. - Why does this matter for prediction markets?
It removes key barriers to institutional participation by combining custody, collateral, and execution into one system.
Source: https://news.bitcoin.com/bitgo-susquehanna-crypto-open-otc-gateway-to-prediction-markets-for-institutions/
