BitGo Holdings (NYSE: $BTGO) is now offering institutional clients, including hedge funds, access to prediction markets.
BitGo is partnering with quantitative trading firm Susquehanna to provide institutions with over the counter (OTC) access to prediction market trades, using digital assets held on BitGo’s platform as collateral.
The offering targets hedge funds, family offices, and high-net-worth individuals, allowing them to transact in event-driven contracts without relying on retail platforms or converting crypto to cash.
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Liquidity will be provided by Susquehanna, with trades executed bilaterally through BitGo’s OTC desk. The firms said transactions will follow standard derivatives documentation frameworks.
Investors such as hedge funds use over-the-counter desks mainly to trade large or complex positions without disrupting the market or exposing their strategies.
The structure mirrors how institutions already trade traditional derivatives, where assets remain in custody and positions are collateralized rather than fully funded upfront.
BitGo’s approach is novel as most prediction markets are based on retail platforms, require pre-funding, and focus on individual retail investors.
However, BitGo, a crypto infrastructure company, says institutional investors are increasingly using prediction markets as a hedging tool, taking positions on event outcomes such as elections and macroeconomics to offset risks in their portfolios.
Prediction markets have seen rapid growth in recent months, with trading volumes topping $45 billion U.S. in 2025.
BTGO stock has declined 47% over the past year to trade at $9.80 U.S. per share.