In this article4 sections
Kalshi Prime clients can pledge bitcoin, ether and stablecoins to borrow dollars and use them as margin on perpetual futures, under an arrangement with custodian BitGo, Ambcrypto reported. The loans were first reported on Oct. 21, 2026, and follow Kalshi‘s expansion of perpetual contracts this year.
Kalshi Prime is Kalshi’s U.S.-registered futures commission merchant. Under the structure described by Ambcrypto, the client borrows, Kalshi Katalyst — a lending arm tied to Kalshi Prime — provides the loan, and the collateral sits with BitGo Bank & Trust. The goal is to serve traders who need dollars for margin but would rather not sell their holdings.
Also read: Utah sues Kalshi for up to $60M over illegal betting claims
Key facts
- Eligible collateral is bitcoin, ether and stablecoins that meet GENIUS Act requirements, according to Kalshi Prime CEO Jeff Bandman.
- Loans are issued by Kalshi Katalyst and secured against assets held at BitGo Bank & Trust, in what Coincentral describes as tri-party collateral management.
- Bitcoin Magazine reported that Webull, a day before the BitGo news, said U.S. customers cleared for futures trading could trade perpetuals on its platform from November, starting with bitcoin, routed through KalshiEX and cleared by Kalshi Klear.
- Coincentral, citing Bloomberg, put Kalshi’s perpetuals trading at roughly $1.1 billion on Tuesday.
- KalshiEX launched perpetual futures in May 2026, starting with crypto and expanding into gold, silver and a stock index, per Bitcoin Magazine and Coincentral.
How the three-party loan works
The structure separates the borrower, the lender and the custodian. Kalshi Katalyst takes the credit risk; BitGo Bank & Trust keeps the pledged coins apart from both. Ambcrypto reported that more custodians will be added later.
Bandman framed the product around customers who want to keep their digital assets. Coincentral quoted him saying the aim was to make it possible for customers to “stay in crypto.” Ambcrypto quoted him separately saying the firm was listening to customers and adapting its model to how they actually hold and manage assets. Bitcoin Magazine reported that he named crypto-native traders active on offshore perpetuals venues, large holders, and Latin American firms operating on U.S. dollar stablecoins as likely users.
Also read: White House teleprompter operator accused of Kalshi insider trading leaves government: AP
The reports agree on the basics of the arrangement. Ambcrypto and Coincentral both say the borrowed cash can be used as margin for perps on Kalshi. Bitcoin Magazine, citing Bloomberg, notes this targets a segment where Kalshi has acknowledged a structural disadvantage against Polymarket, its offshore, blockchain-based rival.
Why it matters
Kalshi built its name on event contracts — elections, rate cuts — and is now assembling the pieces of a regulated derivatives venue: a futures commission merchant, a designated contract market, a clearinghouse and now a lending arm. Coincentral reported that Kalshi’s crypto perpetuals crossed $1 billion in volume within a week of launch, and that the CFTC approved the BTCPERP contract on May 29. Before that approval, U.S. traders lacked a domestic regulated venue for these contracts.
For large crypto holders, the arrangement removes a long-standing friction: selling spot to post margin. For rivals, it tightens the link between custody and trading in a single regulated package. Coincentral and Bitcoin Magazine both report that Kalshi has asked regulators to approve perpetual-style contracts on oil and U.S. equities, and that Kalshi Klear sought CFTC approval in September to offer leverage on event contracts — which currently must be fully collateralized.
What to watch
Webull’s perpetual rollout, expected to begin in November for customers already approved for futures trading, with wider availability planned before year-end, per Bitcoin Magazine. Also watch whether the CFTC acts on Kalshi’s requests covering oil and U.S. equity perpetuals, and whether additional custodians join the BitGo network.
Legal risk runs alongside the product buildout: Bitcoin Magazine reported that Utah sued Kalshi on Monday over alleged illegal sports gambling, following New York’s action against Polymarket last month.
Nothing here is financial advice, and crypto and derivatives markets are volatile and uncertain.
Reported by ambcrypto.com.
Sources: AMBCrypto, Coincentral, Bitcoinmagazine