BitGo and SIG Crypto team on prediction market access

BitGo Prime and Susquehanna Crypto have partnered to provide institutional clients, including hedge funds and family offices, with over-the-counter (OTC) access to prediction market trades. This service allows large investors to use digital assets held on BitGo’s platform as collateral for trading event-driven contracts, bypassing the need to convert crypto to cash or use retail platforms.

Susquehanna Crypto will supply liquidity, with trades executed bilaterally via BitGo’s OTC desk, following standard derivatives documentation. This structure mirrors traditional derivatives trading where assets remain in custody. Institutional investors are increasingly using prediction markets for hedging risks related to real-world events like elections or economic shifts, as these markets can hedge tail risks difficult to capture with conventional instruments.

The offering aims to address infrastructure gaps and regulatory fragmentation that have slowed institutional adoption. By integrating custody, collateral management, and OTC execution into one workflow, the partnership seeks to align prediction market access with the existing compliance frameworks and infrastructure institutions use for other asset classes.

(Source：CoinDesk)