BitGo Bank & Trust has announced that it has become the first custodian to join Kalshi Prime's HODL Margining network. Under the integration, eligible customers can borrow US dollars against Bitcoin, Ethereum, or select stablecoins and use the proceeds to fund margin — the collateral traders post to open and maintain leveraged positions — for perpetual futures without selling their holdings. The company said the move allows customers to maintain legal ownership of their assets while leveraging them for trading.

Collateral posted under the arrangement remains in BitGo's qualified custody and is kept in cold storage, meaning the private keys controlling the assets are held offline, segregated from other assets. That structure lets eligible Kalshi Prime customers unlock liquidity from existing crypto positions rather than liquidating them, while the pledged coins stay secured at BitGo.

How HODL Margining Works

Through the HODL Margining network, customers borrow USD against their Bitcoin, Ethereum, or select stablecoin holdings and direct the borrowed funds toward margin requirements for perpetual futures, a widely traded class of crypto derivative that, unlike conventional futures contracts, carries no expiration date and can be held indefinitely. The design means investors can keep exposure to their digital assets while accessing dollar liquidity for trading.

The Essentials

• BitGo Bank & Trust is the first custodian for HODL Margining in Kalshi Prime.
• Eligible customers can leverage Bitcoin, Ethereum, or stablecoins for margin trading.
• Digital assets remain in BitGo's qualified custody and cold storage.
• The service enables borrowing without selling holdings.
• The arrangement is expected to increase institutional participation in the crypto market.

The Companies Behind the Partnership

BitGo provides digital asset custody solutions, focusing on the security and compliance of crypto holdings for institutional clients. Custody is a long-established function in traditional finance, where banks and trust companies safeguard client securities and cash on clients' behalf; in this arrangement, BitGo occupies that same position for crypto collateral. Kalshi Prime, for its part, enables clients to use cryptocurrency as collateral for futures trades, a development the announcement describes as part of the industry's broader evolution toward integrating digital assets into traditional finance.

The collaboration also points to growing acceptance of cryptocurrency as a legitimate form of collateral in financial markets, which could enhance the utility of digital assets and attract additional institutional interest. The structure closely mirrors securities-based lending in traditional finance, where investors borrow against portfolios they continue to hold.

What Comes Next

The announcement has drawn attention within the crypto community, as integration into Kalshi Prime's platform could support increased trading activity. The integration may also lead to higher borrowing volumes as customers gain a way to fund positions without exiting them.

Market participants will be watching how the partnership develops, its potential impact on market dynamics, and whether similar collaborations emerge as cryptocurrency continues to gain traction in institutional finance.

This article is for informational purposes only and does not constitute financial advice.