BitGo and Susquehanna Crypto have jointly launched an over-the-counter service giving institutional clients access to prediction markets. The offering represents a notable expansion in how large-scale investors can engage with this segment of the digital asset space. The partnership targets a client base that has historically faced structural barriers to participating in such markets.
Under the new arrangement, trades can be collateralized using crypto assets or stablecoins that are already held in custody. This structure means clients do not need to liquidate existing holdings in order to participate. The approach is designed to reduce friction and preserve portfolio positions while still enabling market activity.
The initiative is specifically aimed at closing infrastructure gaps that have previously limited institutional involvement in prediction markets. Such gaps have long been cited as a reason why larger players have stayed on the sidelines despite growing interest in the sector. By offering an OTC channel, the two firms seek to make participation more practical for this audience.
BitGo, known primarily for its digital asset custody and security services, brings its existing institutional infrastructure to the arrangement. Susquehanna Crypto contributes its trading expertise to the partnership. Together, the firms position the service as a more accessible entry point for institutions seeking exposure to prediction market outcomes.
The launch reflects a broader trend of financial service providers working to adapt crypto-native products for institutional use. Custody-backed collateral models have gained traction as a way to meet the risk management requirements that institutional clients typically demand. The prediction market segment, in particular, has seen growing interest as a tool for hedging and price discovery across a range of events and outcomes.
Originally reported by CoinDesk.
