Kalshi Introduces Crypto-Backed Margin Loans Through Webull Amid Washington Data-Security Scrutiny

Kalshi, a U.S.-regulated prediction market, is expanding into crypto-backed leverage, enabling traders to borrow against Bitcoin and other digital assets to finance perpetual futures positions. The products will initially be available mainly through Webull, a retail broker facing bipartisan scrutiny in Washington over concerns about China-linked access to customer data.

Kalshi Launches Crypto-Backed Margin Financing

Kalshi announced a three-party partnership with digital asset custodian BitGo Bank & Trust. Under the arrangement, eligible Kalshi Prime clients can borrow against Bitcoin (BTC), Ether (ETH), and qualifying stablecoins held in BitGo custody to fund margin for perpetual futures.

The structure allows traders to retain long-term exposure to spot crypto assets while using those holdings as collateral for leveraged derivatives positions.

Loans will be issued by Kalshi Katalyst, a lending affiliate of Kalshi Prime, and secured by assets held at BitGo Bank & Trust, a federally chartered trust bank. Initial eligible collateral includes BTC, ETH, and stablecoins that comply with the GENIUS Act, according to Kalshi Prime CEO Jeff Bandman.

Kalshi says the arrangement provides institutional and retail traders with a CFTC-compliant framework for accessing crypto-backed leverage in the United States.

Webull Expands Access to Kalshi Trading Contracts

The announcement came one day after Webull confirmed plans to launch U.S. perpetual futures trading in November, beginning with cryptocurrency-linked contracts.

Webull’s crypto contracts will trade on KalshiEX LLC, a designated contract market regulated by the U.S. Commodity Futures Trading Commission, and clear through Kalshi Klear LLC, a derivatives clearing organization.

Access will initially be limited to Webull customers already approved for futures trading, with a broader retail rollout expected before the end of the year. The integration gives Kalshi direct access to Webull’s retail user base without requiring customers to open separate exchange accounts.

Congressional Report Raises Questions About Webull

Although the partnership could accelerate access to regulated crypto derivatives, Webull’s role as Kalshi’s primary retail gateway comes amid growing political pressure.

On October 7, the bipartisan U.S. House Select Committee on China published an investigation into Webull Financial. The report raised concerns about Webull’s ownership structure, technology infrastructure, and the possible exposure of American investor data to Chinese state surveillance.

Lawmakers also examined the involvement of China-based employees and affiliates in the company’s technology operations and corporate structure. The committee further noted that key customer service and technical support functions have historically relied on mainland China-based affiliates.

Webull has disputed the committee’s findings, saying that U.S. customer data is stored domestically and protected by U.S. privacy controls.

Implications for Kalshi and Retail Traders

Kalshi’s move into crypto-backed lending gives eligible traders a way to finance leveraged positions while retaining exposure to assets such as Bitcoin. Using Webull as its main retail gateway could bring these products to a wider U.S. audience, but it also ties Kalshi’s expansion to a broker under bipartisan scrutiny over data security and China-linked operations.

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