In a significant development for institutional crypto traders, BitGo Prime (BTGO) and Susquehanna Crypto have announced a strategic partnership to offer over-the-counter (OTC) access to prediction market trades. The new service will allow hedge funds, family offices, and high-net-worth investors to engage in event-driven contracts using digital assets held on BitGo's platform as collateral.
According to a press release on Tuesday, Susquehanna Crypto will provide liquidity, with trades executed bilaterally through BitGo's OTC desk. This structure enables investors to transact without converting their crypto holdings into cash or relying on retail platforms, thereby maintaining custody and collateralization of assets.
"This partnership bridges a critical gap between institutional investors and the rapidly evolving prediction markets," said a spokesperson for BitGo.
Prediction markets have seen exponential growth, with trading volumes reaching $40 billion–$45 billion in 2025, driven by increased retail participation and the rising popularity of platforms like Polymarket and Kalshi. Institutional interest has also surged, as these markets offer a unique way to hedge against risks from political and economic events, which are often difficult to capture with traditional instruments.
At press time, Bitcoin was trading at , while Ethereum held steady at . The move by BitGo and Susquehanna is expected to further legitimize crypto-based prediction markets and could attract more institutional players into the space.
The collaboration leverages BitGo's expertise in institutional digital asset custody and Susquehanna's prowess in derivatives market-making. Transactions will adhere to standard derivatives documentation frameworks, ensuring compliance and transparency for investors.
Market Implications
This development is likely to have a profound impact on the crypto market. By providing a regulated and secure platform for institutional investors, it could drive increased liquidity and stability in crypto-based prediction markets. For traders and investors, this means more opportunities to hedge risks and diversify portfolios.
Looking Ahead
As the crypto industry continues to mature, all eyes will be on how this partnership evolves and whether it encourages other financial institutions to enter the prediction market space. Additionally, the performance of BitGo's recently launched OTC trading desk and its integration with institutional custody systems will be closely watched by market participants.
