Kalshi Prime and BitGo Let Eligible Customers Fund Margin Without Selling Crypto

BitGo Holdings and Kalshi Prime announced the launch of HODL Margining on Oct. 22, 2026, a Kalshi Prime network that lets eligible customers cover fiat margin requirements with crypto holdings, without selling any crypto first.

BitGo Bank & Trust, National Association, a digital asset trust bank regulated by the OCC and a BitGo subsidiary, is the network’s first custodian.

How the margin lending works

The network lets eligible customers of Kalshi Prime, a futures commission merchant (FCM) registered with the CFTC, borrow against digital assets they hold in qualified custody at BitGo Bank & Trust, or at any other custodian that joins the network, to fund margin for KalshiEX perpetual futures and other eligible margin products.

Kalshi Katalyst, Kalshi Prime’s lending affiliate, issues loans in U.S. dollars to eligible customers, backed by BTC, ETH or eligible stablecoins in custody at BitGo Bank & Trust or another network custodian.

Katalyst credits the loan proceeds to the borrower’s Kalshi Prime account, where the FCM’s margin, segregation and risk controls apply.

Kalshi Prime CEO Jeff Bandman said the offering targets digitally native customers, who can fund margin without selling their existing holdings.

“We see this as an exciting practical step in marrying the regulated CFTC framework with on-chain innovation,” he said.

Custody and collateral structure

Pledged assets stay in qualified custody at BitGo Bank & Trust under the structure, rather than moving to a third-party venue or being converted to cash.

They are held in segregated client accounts, apart from BitGo’s corporate assets, and protected by BitGo’s cold-storage infrastructure.

BitGo said it carries insurance of up to $250 million on custodied assets.

Borrowers retain legal ownership of the pledged assets, subject to Kalshi Katalyst’s security interest in them, the companies said.

BitGo CEO and co-founder Mike Belshe said the firm’s clients expect security across everything they do.

“With Kalshi Prime, eligible clients can borrow against their holdings to fund margin while keeping the pledge assets at BitGo Bank & Trust,” he said.

KalshiEX products and regulatory status

KalshiEX began trading perpetual futures on May 29, 2026, starting with crypto contracts.

BitGo and Kalshi Prime said the exchange has since added 19 crypto pairs plus real-world assets such as gold and the Kalshi 500 perpetual index.

Kalshi Klear, Kalshi’s clearinghouse, submitted a CFTC application in September 2026 seeking to permit margin on select event contracts.

Kalshi Prime is also an NFA member.

Neither Kalshi Katalyst nor its loans are regulated by the CFTC or the NFA, and pledged digital assets may be liquidated.

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