U.S.-regulated prediction market Kalshi is expanding into crypto-backed leverage, allowing traders to borrow against Bitcoin and other digital assets to fund perpetual futures positions. The products will reach retail investors primarily through Webull — a broker now facing bipartisan scrutiny in Washington over concerns about China-linked access to customer data.
Kalshi Opens Bitcoin-Backed Loans for Futures Margin
Kalshi announced Wednesday a tri-party partnership with digital asset custodian BitGo Bank & Trust. Under the agreement, eligible Kalshi Prime clients can now borrow against Bitcoin (BTC), Ether (ETH), and compliant stablecoins held in BitGo custody to fund perpetual futures margin.
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The structure allows traders to maintain long-term upside exposure to spot crypto assets while using that capital to finance leveraged derivatives trades.
Under the agreement, loans will be issued by Kalshi Katalyst, a lending affiliate of Kalshi Prime, and secured against assets held at BitGo Bank & Trust, a federally chartered trust bank.
Initial collateral options include BTC, ETH, and stablecoins compliant with the GENIUS Act, according to Kalshi Prime CEO Jeff Bandman in comments to Bloomberg.
The arrangement provides institutional and retail traders with a CFTC-compliant framework inside the United States.
Webull to Bring Kalshi’s Contracts to Retail Investors
The announcement came a day after retail broker Webull confirmed plans to launch U.S. perpetual futures trading in November, starting with cryptocurrency-linked contracts.
Under the partnership, Webull’s crypto contracts will trade on KalshiEX LLC, a designated contract market regulated by the U.S. Commodity Futures Trading Commission (CFTC), and clear through Kalshi Klear LLC, a derivatives clearing organization.
Initial availability will be restricted to Webull customers already approved for futures trading, with broader retail rollouts expected before year-end.
The integration gives Kalshi direct access to Webull’s retail user base without requiring traders to open separate exchange accounts.Â
Congressional Report Highlights Webull Data Risks
While the partnership accelerates regulated crypto derivatives access, Webull’s role as the primary retail gateway arrives amid heightened political pressure.
On October 7, a bipartisan U.S. House Select Committee on China published an investigation into Webull Financial. The report cited concerns over Webull’s ownership structure, technology infrastructure, and the potential exposure of American investor data to Chinese state surveillance.
The lawmakers also examined the role of China-based employees and affiliates in the company’s technology operations and corporate structure.
The committee further highlighted that key customer service and technical support functions have historically relied on mainland China-based affiliates. Webull has disputed the committee’s findings, stating that U.S. customer data is stored domestically and governed by U.S. privacy controls.
Why This Matters
Kalshi is pushing deeper into crypto-backed lending, letting eligible traders borrow against Bitcoin while using Webull as its main retail gateway. The move could bring leveraged crypto products to more U.S. investors through Webull, but it also links Kalshi’s retail expansion to a broker facing bipartisan scrutiny over concerns about China-linked access to customer data.
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