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Kalshi Prime clients will be able to pledge bitcoin, ether and GENIUS Act-compliant stablecoins held at BitGo Bank & Trust as collateral for loans that fund margin positions on Kalshi‘s perpetual futures, according to Bitcoinmagazine. The arrangement was reported Wednesday, October 21, 2026, and pairs the lending product with a separate distribution agreement that puts Kalshi’s perpetual contracts in front of Webull’s more than 6 million customers.
Under the tri-party setup, Kalshi Katalyst, a lending affiliate of the U.S.-registered futures commission merchant, acts as lender while BitGo Bank & Trust, the firm’s federally chartered trust bank, holds the pledged assets. Kalshi Prime CEO Jeff Bandman told the outlet that the design targets crypto-native traders, including those already trading perpetuals on offshore venues and large holders who would rather not sell bitcoin to fund futures positions.
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Key facts
- Eligible collateral is limited to bitcoin, ether and stablecoins deemed compliant with the GENIUS Act, with additional custodians expected to join over time, per Bitcoinmagazine.
- BitGo Bank & Trust serves as custodian, giving institutional clients a regulated holder they can point compliance teams to, Cryptobriefing reported.
- Webull said eligible U.S. customers can trade perpetual futures on its platform beginning in November, starting with bitcoin and a handful of other crypto assets, with access initially limited to customers already approved through Webull Futures accounts.
- Webull Group President and U.S. CEO Anthony Denier said perpetual futures saw more than $90 trillion in global volume in 2025.
- Kalshi secured CFTC clearance for the first U.S.-regulated bitcoin perpetual in late May and went live with the contract in early June, later adding gold, silver and a US500 stock index perpetual.
How the lending structure works
The client is the borrower; Kalshi Katalyst issues the loan; BitGo holds the collateral. Borrowed funds then back leveraged long or short positions on perpetual contracts, which carry no expiration date and can be held as long as margin requirements are met. Cryptobriefing described the setup as a way for traders to keep coin holdings and trade derivatives at the same time, subject to Kalshi’s eligibility rules.
The product addresses a gap Kalshi has acknowledged against Polymarket, its offshore, blockchain-based rival, which has long served crypto whales and trading firms that prefer to keep capital in digital assets. Both platforms have been expanding into perpetuals since the spring.
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Webull distribution and a fast product buildout
The BitGo arrangement was announced a day after Webull said its perpetual contracts will trade on KalshiEX LLC, Kalshi’s CFTC-regulated designated contract market, and clear through Kalshi Klear LLC, its derivatives clearing organization. Broader Webull availability is expected before year-end.
The two announcements extend a busy stretch for Kalshi, which moved from regulatory sign-off in May to a live bitcoin perpetual in June, then added precious-metals and equity-index perpetuals. The expansion is unfolding alongside state-level legal pressure: Utah sued Kalshi on Monday over what it alleges is illegal sports gambling, following New York’s similar action against Polymarket last month.
Why it matters
Borrowing against volatile assets to fund leveraged positions stacks two layers of exposure. A sharp drop in bitcoin or ether reduces collateral value at the same moment leveraged positions may be losing money, as Cryptobriefing noted; stablecoin collateral is the more conservative option, narrowed by the GENIUS Act requirement. For crypto-native traders who previously had to choose between holding coins and trading derivatives, the change affects capital efficiency most directly.
What to watch
Watch how quickly Webull users adopt the perpetual contracts after the November launch, whether Kalshi widens eligible collateral beyond bitcoin, ether and compliant stablecoins, and whether other U.S.-regulated venues introduce similar lending arrangements.
Sources: Bitcoin Magazine, Cryptobriefing
