BitGo, Susquehanna roll out institutional OTC access to prediction markets

BitGo, Susquehanna roll out institutional OTC access to prediction markets

The offering allows institutional investors to trade event-based contracts using crypto collateral, as regulatory scrutiny of prediction markets intensifies in the United States.

BitGo, a digital asset custody and trading platform, and Susquehanna Crypto will collaborate to give institutional clients over-the-counter access to prediction markets, allowing them to trade event-based contracts using cryptocurrency or stablecoins held in custody.

According to Tuesday’s announcement, trades will be routed through BitGo’s platform, with liquidity provided by Susquehanna, which will enable hedge funds, family offices and other large investors to execute bilateral trades without moving assets off platform or converting holdings, including Bitcoin or stablecoin, into cash.

Positions are backed by crypto collateral and documented using derivatives-style agreements, with minimum trade sizes starting at $100,000.

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