BitGo and Susquehanna International Group have partnered to provide institutional investors with over-the-counter access to prediction markets using cryptocurrency collateral. The collaboration arrives as U.S. regulators increase their examination of prediction market platforms and their operations.
New Infrastructure for Institutional Trading
The partnership enables institutional players to trade event-based contracts through an OTC desk structure, removing the need to interact directly with retail-facing prediction market platforms. BitGo will provide custody and settlement services, while Susquehanna brings its market-making expertise and institutional trading infrastructure to the arrangement.
This development reflects growing institutional interest in prediction markets as an alternative asset class and hedging tool. By offering crypto-native settlement alongside traditional institutional service standards, the partners aim to bridge the gap between emerging prediction market opportunities and institutional compliance requirements.
The timing proves significant as platforms like Polymarket and Kalshi face ongoing regulatory discussions with the Commodity Futures Trading Commission regarding their operational frameworks and market offerings.
Implications for Web3 Talent Markets
This institutional expansion signals potential workforce growth across several specialized roles. Firms entering the prediction markets space will need professionals with expertise in derivatives trading, regulatory compliance, and blockchain infrastructure.
The collaboration particularly highlights demand for talent who can navigate both traditional financial services and crypto-native operations. Custody providers like BitGo continue expanding their service offerings beyond basic digital asset storage, requiring teams with broader skill sets spanning derivatives, compliance, and institutional client services.
For blockchain professionals, the partnership demonstrates how established players are building compliant infrastructure around decentralized prediction protocols. This trend creates opportunities for developers, compliance specialists, and operations professionals who understand both legacy financial systems and emerging Web3 applications.
As prediction markets mature into institutional products, professionals with experience in options trading, risk management, and regulatory frameworks will find their expertise increasingly valuable in the crypto sector. The convergence of traditional finance expertise with blockchain technology continues reshaping talent requirements across the industry.
