New York Stock Exchange (NYSE) parent entity Intercontinental Exchange has announced it is taking a $2 billion stake in prediction market platform Polymarket.
The move marks the Intercontinental Exchange’s foray into event-driven markets and enhances the betting platform’s credibility and efforts to re-establish itself in the US.
Intercontinental Exchange Invests In Polymarket
The $2 billion investment and deal values Polymarket at $8 billion, and marks the exchange’s expansion into event-driven markets as the nascent market gains popularity. The investment by one of the world’s leading exchange operators could help enhance Polymarket’s credibility. The Intercontinental Exchange stated that it would pay for the deal in cash and become a distributor of Polymarket’s event-driven data.
“JUST IN: NYSE owner Intercontinental Exchange invests $2 billion in Polymarket, the largest private round in crypto history.”
Prediction markets allow users to bet on outcomes across sports, entertainment, politics, and the economy. Users can bet on when the government shutdown will end, election results, and even things like the least-streamed song from an album. The deal is a major vote of confidence for Polymarket as it attempts to re-enter the US market after three years.
Improving Relations
Polymarket’s relationship with US authorities has improved drastically under the Trump administration. The firm’s founder and chief executive, Shayne Coplan, recently shared an article that the Commodity Futures Trading Commission (CFTC) and Justice Department investigations into the company had ended. Additionally, Donald Trump Jr. joined Polymarket’s advisory board in August, and his venture-capital firm 1789 Capital became an investor in the prediction market. Intercontinental Exchange CEO Jeffrey Sprecher stated,
“There are opportunities across markets which ICE, together with Polymarket, can uniquely serve, and we are excited about where this investment can take us. By combining ICE’s institutional scale and credibility with Polymarket’s consumer savvy, we will be able to deliver world-class products for the modern investor.”
Polymarket has also secured approval from the CFTC to re-launch in the US following the $112 million acquisition of QCEX, a CFTC-licensed derivatives exchange and clearinghouse. The US has eased regulatory oversight under the Trump administration and focused on nascent sectors like crypto and event contracts, which have seen several ventures from entities connected to the President’s family.
How The Polymarket Deal Favors Intercontinental Exchange
According to sources, Intercontinental Exchange plans to leverage Polymarket’s event-driven data to provide sentiment indicators on relevant market topics. Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors, stated,
“The real prize for ICE is not just clearing contracts but monetizing the data, selling odds as sentiment factors alongside rates and credit where every rumor pays a fee.”
Intercontinental Exchange and Polymarket also plan to collaborate on future tokenization initiatives.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice