Episode Details

BitGo and Susquehanna Cryptos Partnership: A New Gateway for Institutional Investors in Prediction Markets

BitGo and Susquehanna Crypto have joined forces to enable big investors to trade prediction market contracts over the counter. This collaboration allows hedge funds and family offices to wager on real-world events using their crypto holdings as collateral, without the need to cash out or move assets. With minimum trades starting at $100,000, the partnership leverages BitGos custody platform and Susquehannas liquidity provision.

This development comes as a response to institutional investors concerns about safely holding collateral and smooth trading setups. Prediction platforms like Kalshi have faced challenges from U.S. regulators, with at least eleven states considering them as unlicensed gambling. However, a federal judge in Tennessee recently ruled that these contracts fall under the Commodity Futures Trading Commissions jurisdiction, not state gaming laws.

As federal regulators consider new rules, this new institutional gateway could facilitate the growth of prediction markets, bridging crypto assets with event-based trading in a compliant manner.

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