Kalshi to Let Traders Use Bitcoin-Backed Loans for Leveraged Futures Bets

Kalshi is rolling out a way for some clients to borrow against their cryptocurrency holdings to fund leveraged futures trades, through a new arrangement with digital-asset custody firm BitGo Holdings. Customers of Kalshi Prime, the company's US-registered futures commission merchant, will be able to post Bitcoin, Ether or stablecoins deemed compliant with the Genius Act as collateral, then use the resulting loan proceeds to fund margin positions on futures traded on Kalshi's main exchange.

Staying in crypto while trading

The loans will be issued by Kalshi Katalyst, a lending affiliate of Kalshi Prime, and secured against digital assets held at BitGo Bank & Trust. Kalshi Prime Chief Executive Jeff Bandman said the goal is to let customers keep their crypto holdings intact while still accessing capital for trading, pointing to investors who would rather not sell their Bitcoin, as well as businesses such as a Latin American company that relies on dollar-pegged stablecoins for its operations.

The move pushes Kalshi further into the intersection of crypto and traditional derivatives trading, letting the exchange tap growing demand from traders who want to use digital assets as collateral rather than converting them to cash. It also deepens Kalshi's relationship with BitGo, which handles custody of the underlying crypto backing the loans.