BitGo and Susquehanna Crypto are teaming up to provide institutional clients with over-the-counter access to prediction markets, enabling trades in event-based contracts using cryptocurrencies or stablecoins held in custody. This collaboration allows hedge funds and family offices to execute large trades without converting their assets to cash or moving them off-platform, with minimum trade sizes starting at $100,000. The contracts will cover a range of outcomes, from sports events to Bitcoin price movements, reflecting market probabilities.
This development is significant as it addresses the existing gaps in custody and execution infrastructure that have limited institutional participation in prediction markets. With the growing interest in these markets, particularly for pricing event-driven risks, the partnership could enhance liquidity and attract more institutional investors, potentially impacting cryptocurrency valuations and trading volumes.
Market professionals should monitor this collaboration closely, as it may signal a shift in how institutional investors engage with prediction markets, especially amid increasing regulatory scrutiny in the U.S.
Source: cointelegraph.com