Kalshi Expands Crypto Derivatives with Bitcoin-Backed Loans and Webull Deal

Kalshi is stepping up its effort to become the regulated U.S. hub for crypto perpetual futures, combining a new bitcoin-backed lending arrangement with digital-asset custodian BitGo and a distribution agreement that exposes its perpetual contracts to more than 6 million Webull customers.

Bloomberg first reported on Wednesday that clients of Kalshi Prime — the firm’s U.S.-registered futures commission merchant — can borrow against digital assets held at BitGo and use the funds to support margin positions on perpetual futures traded on Kalshi’s main exchange.

Under the tri-party structure, loans are issued by Kalshi Katalyst, a lending affiliate of Kalshi Prime, and secured by assets held at BitGo Bank & Trust, the federally chartered trust bank of the company.

Eligible collateral includes bitcoin, ethereum, and stablecoins that comply with the GENIUS Act, with additional custodians expected to join Kalshi’s network in time.

Prime CEO Jeff Bandman told the outlet the product targets crypto-native traders, including those active on unregulated offshore perpetual venues and large holders who would rather not sell their bitcoin to fund futures positions.

He also pointed to unexpected demand from businesses, such as Latin American firms that run their operations using U.S. dollar stablecoins.

The move focuses on a segment where Kalshi 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 capital in digital assets. The two platforms have been racing to build out perpetuals since the spring.

Webull launches crypto-linked perpetual futures on Kalshi’s rails

The BitGo arrangement came one day after Webull announced Tuesday that eligible U.S. customers can trade perpetual futures on its platform starting in November, initially with bitcoin and several other crypto assets.

The contracts are traded on KalshiEX LLC, Kalshi’s CFTC-regulated designated contract market, and cleared through Kalshi Klear LLC, the firm’s derivatives clearing organization. Access is first limited to customers already approved for futures trading through existing Webull Futures accounts, with broader availability expected before year-end.

Webull Group President and U.S. CEO Anthony Denier said in the company’s release that perpetual futures generated more than $90 trillion in global volume in 2025 and that American investors should be able to access them through a regulated platform.

These two announcements extend a product buildout for the company, which secured CFTC clearance for the first U.S.-regulated bitcoin perpetual in late May and went live with the contract in early June, before adding gold and silver perpetuals in September and a US500 stock index perpetual earlier this month.

The expansion comes amid mounting state-level legal pressure, with Utah becoming the latest state to sue Kalshi on Monday over what it alleges is illegal sports gambling, following New York’s similar action against Polymarket last month.