Kalshi is allowing select traders to borrow against crypto holdings to fund leveraged perpetual futures on its regulated exchange. The company detailed an arrangement with BitGo Holdings Inc. Eligible Kalshi Prime clients can now post bitcoin, ether, and GENIUS Act-compliant stablecoins held at BitGo as collateral for loans that cover margin on Kalshi’s perpetual contracts. The feature lets traders keep exposure to those assets instead of selling them for cash.
The move comes as Kalshi expands perpetual futures after receiving CFTC approval earlier in 2026. It pairs the new collateral option with a distribution deal that will bring the same contracts to a larger retail audience through Webull.
How The BitGo Crypto Collateral Arrangement Works
In the tri-party structure, the client borrows funds, Kalshi Katalyst (a lending affiliate of Kalshi Prime) issues the loan, and BitGo Bank & Trust holds the pledged assets. Eligible collateral includes bitcoin, ethereum, and qualifying stablecoins. More custodians are expected to join later, which could expand the assets traders can use without moving them.
Loan proceeds fund margin on perpetual futures that have no expiration date. Traders can hold a directional position on bitcoin or other underlyings as long as margin requirements are met. Leverage still amplifies gains and losses, but the new option removes the need to liquidate crypto first. Traders can now use it as collateral.
Kalshi Prime CEO Jeff Bandman told Bloomberg the product targets crypto-native traders, including those active on offshore venues and large holders who prefer not to sell bitcoin. He also noted interest from businesses that operate in U.S. dollar stablecoins and want to keep that capital working while accessing regulated leverage.
Why Crypto Holders May Prefer This Path
Selling bitcoin or ether to free up margin dollars has long carried opportunity cost for traders who expect those assets to rise. Borrowing against them lets traders retain the underlying exposure while controlling a larger notional position. The arrangement reduces the friction of switching between crypto and traditional collateral.
Offshore platforms have offered similar crypto-backed margin for years. Kalshi’s version operates through a CFTC-regulated futures commission merchant and its own clearing organization. That structure may appeal to traders who want crypto flexibility within U.S. regulatory oversight.
For desks or businesses already using stablecoins, the feature can serve as working capital. They can pledge compliant stablecoins, draw a loan, and post the proceeds as margin without first converting to cash. Bandman called this use case one the company had not fully anticipated.
Webull Brings The Same Contracts To A Broader Audience
Webull will offer perpetual futures to eligible U.S. customers starting in November, beginning with bitcoin and other crypto assets. The contracts list on KalshiEX LLC and clear through Kalshi Klear LLC. Access starts with existing Webull Futures account holders, with broader availability expected before year-end.
Webull US CEO Anthony Denier noted that perpetual futures saw more than $90 trillion in global volume in 2025. A somewhat pointless stat, but still impressive to mention. The deal brings a regulated U.S. version to Webull’s more than 6 million customers. Traders who access the contracts through Webull may later use the BitGo lending feature, subject to eligibility.
Kalshi received CFTC clearance for a bitcoin perpetual in May 2026 and launched it in June. It later added gold, silver, and a US500 index perpetual. The Webull distribution and BitGo collateral features therefore arrive roughly five months after the initial approval.
What The Expansion Means For Competition And Access
Kalshi has faced a structural gap against offshore rivals like Polymarket that let traders keep capital fully in digital assets. The BitGo partnership closes that gap for Kalshi Prime clients. The Webull rollout simultaneously brings the regulated contracts to a mainstream brokerage audience that previously had limited onshore options.
The $1.1 billion single-day perpetual volume already shows traction on the newer product line. Crypto-backed margin could lower the barrier for holders who stayed on the sidelines. Traders still face standard leverage risks, including liquidation, funding rates, and collateral volatility. As more custodians join and Webull expands access in November, these contracts will reach more users.
For now, the BitGo arrangement gives Kalshi Prime clients a direct way to use crypto holdings as collateral without exiting the asset class. That combination of regulated perpetual futures and crypto-backed loans is step one.
References
- Kalshi to Let Clients Use Bitcoin-Backed Loans for Leveraged Futures Trades – Bloomberg
- Kalshi Pushes Deeper Into Crypto Derivatives With Bitcoin-Backed Margin Loans – Bitcoin Magazine
- Kalshi partners with BitGo to offer crypto-backed loans for futures trading – Crypto Briefing
- Webull to debut crypto-linked perpetual futures in November – Reuters
- Webull Puts a Date on Perpetual Futures: US Rollout Begins in November – PR Newswire
- The Block on X: Kalshi BitGo partnership and volume note
- Kalshi Prime appoints Jeff Bandman as CEO
- BTC Perpetual Futures — Contract Specifications | Kalshi Help Center
- What are Perpetuals? | Kalshi (YouTube)
