TL;DR:
BitGo Bank & Trust and Kalshi Prime launched the HODL Margining network to enable USD loans against crypto asset collateral.
The framework accepts Bitcoin, Ethereum, and select stablecoins under segregated custody backed by up to $250 million in insurance coverage.
Loans are originated by Kalshi Katalyst and credited directly to Kalshi Prime accounts to trade perpetual futures on KalshiEX.
This Thursday, October 22, BitGo and Kalshi Prime announced the HODL Margining network . It is a system enabling institutional investors to access crypto-backed loans to fund trading margins without liquidating their balance sheet.
BitGo Bank & Trust is the first custodian in @Kalshi Prime’s HODL Margining network.
Eligible customers can borrow USD against BTC, ETH, or eligible stablecoins to fund margin for perpetual futures without first selling, keeping legal ownership of their holdings, subject to… pic.twitter.com/B8eRkrbVXo
— BitGo (@BitGo) October 22, 2026
The initiative integrates Kalshi Prime’s commercial trading services with the infrastructure of BitGo Bank & Trust, N.A. , a national trust bank regulated by the U.S. Office of the Comptroller of the Currency (OCC). Under this framework, BitGo Bank & Trust serves as the first qualified custodian integrated into the network.
The operational model addresses a recurring liquidity demand among institutional brokerage firms. Historically, meeting USD margin calls required either selling crypto holdings or deploying external fiat capital. The new structure allows pledging Bitcoin (BTC) , Ethereum (ETH) , or eligible stablecoins.
Loan proceeds originate from Kalshi Katalyst, the credit lending arm of Kalshi Prime. Once the USD capital is disbursed, the balance directly funds the user’s Kalshi Prime account to back trading in perpetual futures and derivatives listed on KalshiEX.
Qualified Custody and Structural Collateral Segregation
The operational architecture isolates collateral custody from lending and trading operations. Pledged assets remain deposited at BitGo Bank & Trust and are neither transferred to Kalshi’s trading platforms nor routed through external intermediaries.
Custodied balances are maintained in segregated accounts under a bankruptcy-remote standard, fully isolated from BitGo’s operational balance sheet. According to BitGo’s official documentation, the assets are secured within institutional cold storage systems backed by insurance policies of up to $250 million.
Depositors retain legal ownership of their crypto assets throughout the entire lifecycle of the loan. However, such title remains subject to a security interest granted to Kalshi Katalyst until the full repayment and settlement of the debt obligation.
Kalshi Prime CEO Jeff Bandman stated that the program aims to adapt the traditional Futures Commission Merchant (FCM) model to the asset-holding behaviors of digital-native institutional clients. Company data suggests this mechanism streamlines margin compliance without triggering forced market exits from strategic long-term positions.
Meanwhile, BitGo CEO and co-founder Mike Belshe explained that the priority for institutional investors lies in unlocking portfolio yield without sacrificing security. According to the firm’s assessments, institutional custody operates as a secure bridge channeling credit liquidity directly into regulated trading venues.
From a regulatory standpoint, the entities involved operate under separate compliance frameworks. Kalshi Prime is registered with the CFTC as an FCM and is a member of the National Futures Association (NFA). Conversely, Kalshi Katalyst and the credit agreements it issues are not regulated by the CFTC or the NFA. Corporate disclosures emphasize that utilizing credit leverage magnifies loss potential and may lead to collateral liquidation should underlying positions experience adverse market moves.
This rollout broadens the scope of KalshiEX, an exchange platform that introduced perpetual futures trading on May 29, 2026, and lists 19 crypto pairs and real-world asset perpetual indices as of late October 2026. Looking ahead to the next operating phase, the HODL Margining network plans to onboard additional qualified custodians as technical audits and cross-participant bilateral agreements are finalized.
