BitGo Holdings, Inc. and Kalshi Prime on Thursday, October 22, announced the launch of HODL Margining, a network that lets eligible customers fund fiat margin obligations with crypto holdings without first selling any assets. The program allows customers of Kalshi Prime, the CFTC-registered futures commission merchant, to borrow U.S. dollars using digital assets kept in qualified custody at BitGo Bank & Trust, which serves as the network's first custodian.

The arrangement targets a persistent funding need among institutional brokerage firms. In the past, firms facing USD margin calls had to either offload their crypto positions or commit outside fiat capital, according to Crypto Economy. The program removes the need to liquidate digital asset positions before posting margin, opening the door to regulated perpetual futures with 24/7 trading, no contract rolls, capital efficiency and the ability to take short positions.

How the HODL Margining Structure Works

Under the tri-party structure, loans in U.S. dollars are extended to qualifying customers by Kalshi Katalyst, a lending affiliate of Kalshi Prime, with BTC, ETH or eligible stablecoins at BitGo Bank & Trust or other participating custodians serving as security. Katalyst then credits the loan proceeds straight into the borrower's Kalshi Prime account, at which point Kalshi Prime's margin, segregation, and risk controls take effect.

The collateral stays in qualified custody at BitGo Bank & Trust instead of moving to an outside venue or being turned into cash. Because the assets remain with a regulated custodian, customers can post margin while keeping legal ownership of what they have pledged, subject to Kalshi Katalyst's security interest. Depositors retain legal ownership of their crypto assets throughout the entire lifecycle of the loan, though that ownership stays encumbered by the security interest held by Kalshi Katalyst until the debt is fully repaid and settled.

The operational architecture isolates collateral custody from lending and trading operations, according to Crypto Economy. Collateral stays on deposit at BitGo Bank & Trust, never moving onto Kalshi's trading platforms or passing through outside intermediaries. Custodied balances sit in segregated accounts that are bankruptcy-remote, kept entirely apart from BitGo's own operational balance sheet.

Custody and Collateral Details

The first custodian to join the new network is BitGo Bank & Trust, National Association, a digital asset trust bank regulated by the OCC and a subsidiary of BitGo. Client digital assets sit in segregated accounts, walled off from BitGo's corporate holdings, and are protected through the firm's cold-storage infrastructure. BitGo maintains insurance of up to $250 million on assets held in custody.

Collateral accepted under the program covers bitcoin, ethereum and stablecoins that meet GENIUS Act requirements, and more custodians are expected to join the network over time, CryptoRank reported. The framework takes Bitcoin, Ethereum, and certain stablecoins held in segregated custody and supported by insurance coverage of up to $250 million, according to Crypto Economy.

In its next operating phase, the network intends to bring on more qualified custodians once technical audits and cross-participant bilateral agreements are completed, Crypto Economy reported.

Executive Commentary

"We believe our clients want to put their digital assets to work, and they expect security to carry through everything they do," said Mike Belshe, CEO and Co-founder of BitGo. Belshe added that through Kalshi Prime, qualifying clients are able to take loans against their holdings to cover margin while the pledged assets stay at BitGo Bank & Trust.

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, according to Crypto Economy. Bandman told Bloomberg the offering was built for crypto-native traders, among them participants already using unregulated offshore perpetuals venues and large holders who would prefer not to part with their bitcoin to finance futures positions, CryptoRank reported.

Bandman also pointed to unexpected demand from businesses, such as Latin American firms that run their operations on U.S. dollar stablecoins, according to CryptoRank. Company data suggests this mechanism streamlines margin compliance without triggering forced market exits from strategic long-term positions, Crypto Economy reported.

Regulatory Framework and Risks

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, according to Crypto Economy.

Corporate disclosures emphasize that utilizing credit leverage magnifies loss potential and may lead to collateral liquidation should underlying positions experience adverse market moves, Crypto Economy reported. The loans fund margin for perpetual futures and other eligible margin products traded on KalshiEX, Kalshi's CFTC-regulated designated contract market, and clear through Kalshi Klear LLC, its derivatives clearing organization.

Kalshi Klear, its clearinghouse, applied to the CFTC in September 2026 to permit margin on select event contracts.

Kalshi's Broader Perpetuals Push

The launch extends BitGo's infrastructure into an institutional margin workflow, connecting regulated custody and collateral management with the financing and trading services clients use. KalshiEX launched perpetual futures trading on May 29, 2026, initially offering crypto contracts. Since then, Kalshi has introduced a broad range of perpetual futures never offered before as regulated products in the US, including 19 crypto pairs, and real world assets including Gold and the Kalshi 500 perpetual index.

The move targets a segment where the company has acknowledged a structural disadvantage against Polymarket, its offshore, blockchain-based rival, which has long catered to crypto whales and trading firms that prefer to keep their capital in digital assets, CryptoRank reported. The two platforms have been racing to build out perpetuals since the spring.

The BitGo arrangement landed a day after Webull announced Tuesday that eligible U.S. customers will be able to trade perpetual futures on its platform beginning in November, starting with bitcoin and a handful of other crypto assets, CryptoRank reported. A Webull distribution deal will bring Kalshi-listed crypto perpetuals to more than 6 million customers, with trading starting in November, expanding U.S. access despite mounting state-level legal challenges.

Conclusion

The HODL Margining network allows eligible Kalshi Prime customers to borrow U.S. dollars against bitcoin, ether and eligible stablecoins held at BitGo Bank & Trust to fund margin on perpetual futures traded on KalshiEX, without selling their crypto. Loans are originated by Kalshi Katalyst and credited directly to Kalshi Prime accounts, while pledged assets remain in qualified custody subject to Katalyst's security interest.

The network plans to onboard additional qualified custodians as technical audits and cross-participant bilateral agreements are finalized. Kalshi Klear's September 2026 application to the CFTC to permit margin on select event contracts remains pending.

Frequently Asked Questions

What is Kalshi and BitGo's HODL Margining network?

HODL Margining is a Kalshi Prime network launched with BitGo on October 22, 2026, that enables eligible customers to fund fiat margin obligations with crypto holdings without first selling any assets. Customers borrow U.S. dollars using digital assets kept in qualified custody at BitGo Bank & Trust, which serves as the network's first custodian.

Which cryptocurrencies can be used as collateral for Kalshi Prime margin loans?

Eligible customers can borrow U.S. dollars against bitcoin, ethereum and eligible stablecoins held at BitGo Bank & Trust or other custodians participating in the network. Collateral accepted covers stablecoins that meet GENIUS Act requirements, and more custodians are expected to join over time.

Who issues the loans in the HODL Margining program?

Loans in U.S. dollars are extended to qualifying customers by Kalshi Katalyst, a lending affiliate of Kalshi Prime. Katalyst deposits the proceeds directly into the borrower's Kalshi Prime account, where Kalshi Prime's margin, segregation, and risk controls apply.

Do customers keep ownership of their crypto when using HODL Margining?

Yes. Because the assets remain with a regulated custodian, customers post margin while keeping legal ownership of what they have pledged, subject to Kalshi Katalyst's security interest. The collateral stays in qualified custody at BitGo Bank & Trust instead of moving to an outside venue or being turned into cash.

Is Kalshi Katalyst regulated by the CFTC?

No. Kalshi Prime is registered with the CFTC as a futures commission merchant and is a member of the National Futures Association, but Kalshi Katalyst and the credit agreements it issues are not regulated by the CFTC or the NFA, according to Crypto Economy.