Kalshi Further Expands Its Crypto Derivatives Business by Leveraging Bitcoin as Collateral for Loans
Bitcoin Magazine
1h ago
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Kalshi is stepping up its efforts to become a regulated crypto perpetual futures platform in the United States. According to reports, the company has collaborated with digital asset custodian BitGo to launch loan arrangements secured by assets such as Bitcoin, and has also reached a distribution partnership with Webull, which will provide the perpetual contracts of Kalshi to its over 6 million customers.
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Kalshi is doubling down on its efforts to become a regulated crypto perpetual futures platform in the United States: on one hand, it is collaborating with digital asset custodian BitGo to launch new Bitcoin mortgage arrangements, and on the other hand, it has reached a distribution agreement to present its perpetual contracts to over 6 million customers of Webull.

Bloomberg reported first on Wednesday that customers of Kalshi Prime – a futures brokerage firm registered in the United States – will be able to use digital assets stored in BitGo as collateral for loans, and use the funds obtained to margin perpetual futures positions traded on the main exchange Kalshi.

According to this tripartite structure, the loan will be issued by Kalshi Katalyst, a loan-related company under Kalshi Prime, and will be secured by assets held at BitGo Bank and Trust. BitGo Bank and Trust are the trust banks that have been granted federal licenses by the government.

Acceptable collateral will include Bitcoin, Ethereum, as well as stablecoins that are deemed in compliance with the GENIUS Act. Over time, it is expected that more custodian institutions will join the Kalshi network.

Prime CEO Jeff Bandman told the media that this product is designed for crypto-native traders, including those who are already active on unregulated offshore perpetual contract platforms, as well as large holders who are unwilling to sell Bitcoin to fund their futures positions.

He also pointed out that the demands from enterprises were unexpected, such as those from some Latin American companies that operate their businesses with US dollar-stabilized tokens.

This move is aimed at a niche market where Kalshi has acknowledged its structural disadvantage. Its offshore, blockchain-based competitor Polymarket has long served crypto whales and trading companies that prefer to keep their funds in digital assets. Since spring, both platforms have been competing to expand their sustainable contract business.

Webull will launch crypto-related perpetual futures through the Kalshi infrastructure

One day before the announcement of the arrangements with BitGo, Webull announced on Tuesday that eligible American customers will be able to trade perpetual futures on its platform starting from November, initially covering Bitcoin and a few other crypto assets.

These contracts will be traded on the designated contract market KalshiEX LLC, which is regulated by the U.S. Commodity Futures Trading Commission (CFTC), and will be cleared through its derivatives clearing institution Kalshi Klear LLC. Initially, they will be limited to customers who have been approved for futures trading through existing Webull Futures accounts, with plans to expand the availability before the end of the year.

Webull Group President and CEO of the United States, Anthony Denier, stated in a company press release that by 2025, the global trading volume of sustainable futures is expected to exceed 90 trillion US dollars, and American investors should be able to access this product through regulated platforms.

These two announcements continue the product expansion of Kalshi. The company received approval from CFTC in late May to launch the first regulated Bitcoin perpetual contract in the United States, which was launched at the beginning of June; subsequently, in September, it added gold and silver perpetual contracts, and earlier this month, it introduced the US500 stock index perpetual contract.

This expansion comes at a time when there is increasing legal pressure at the state level. Following New York State's similar action against Polymarket last month, Utah became the latest state to file charges against Kalshi on Monday, accusing it of engaging in illegal sports gambling.

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