Customers of Kalshi Prime, the company's registered futures commission merchant, can borrow against bitcoin, ether and GENIUS Act-compliant stablecoins held at BitGo and use the cash as margin for perpetual futures.
Kalshi is giving U.S. futures traders a way to put their bitcoin to work as margin without selling it.
Kalshi said in a statement that customers of Kalshi Prime, its U.S.-registered futures commission merchant, will be able to borrow against digital assets held at BitGo Bank & Trust and use the proceeds as margin for perpetual futures on Kalshi's exchange. Eligible collateral includes bitcoin, ether and stablecoins compliant with the GENIUS Act, according to Kalshi Prime Chief Executive Jeff Bandman. The loans come from Kalshi Katalyst, a lending affiliate, under a three-party collateral structure in which BitGo holds the assets. Kalshi said more custodians will be added later.
Why it matters
Perpetual futures are contracts with no expiry date that track a crypto price. Kalshi's perpetual futures traded about $1.1 billion on Tuesday across all its markets, according to DefiLlama, and the company plans to distribute the product to Webull customers in November.
Collateral design determines how much leverage reaches a market. Letting traders keep their bitcoin while borrowing cash against it for margin means a single position can carry two layers of exposure to the same asset. If bitcoin falls, the trader faces losses on the futures position and a shrinking value of the collateral backing the loan.
The timing is notable. Bitcoin fell about 3.7% from Wednesday's high to early Thursday, the kind of move that tests how such structures handle margin calls.
The stablecoin link
The inclusion of "GENIUS Act-compliant" stablecoins ties the product to the federal rulebook the OCC finalized on the same day. That rule takes effect in January 2027, which will clarify which stablecoins qualify.
Three readings
One reading is market-structure progress: regulated U.S. venues offering what offshore exchanges do may draw volume and customers onshore. Another is leverage creep: crypto-backed loans for crypto margin can amplify a selloff. A third is legal risk: CME Group is challenging the approval of Kalshi's bitcoin perpetual, and the Commodity Futures Trading Commission has argued in court that CME lacks standing. A ruling is pending.
What to watch
The loan-to-value ratios and rates Kalshi sets; the court's decision on CME's challenge; and volume in Kalshi's perpetuals once Webull distribution begins in November.