A major player in traditional finance is reportedly looking to make a big splash in the crypto world. Intercontinental Exchange (ICE), the company that owns the New York Stock Exchange (NYSE), is said to be talking about investing a hefty $2 billion into Polymarket. This company runs a popular platform for prediction markets using cryptocurrencies.
The Wall Street Journal first broke the news about this potential deal. Talks are reportedly in the final stages. Such an investment could push Polymarket’s value to between $8 billion and $10 billion. An announcement might even happen as early as Tuesday, though the final details are still being worked out.
This move shows how traditional finance and crypto are starting to mix. It comes as big financial firms are showing more interest in new digital assets. It also happens when Polymarket is trying to get back into the U.S. market after facing years of rules that kept it out.
Polymarket started in 2020. It’s a blockchain-based platform where people can bet on real-world events. Users make “yes” or “no” wagers using USDC, a stablecoin. Topics range from politics and the economy to sports and pop culture.
The platform really took off last year, especially with bets around the U.S. presidential elections. At one point, it handled over $2 billion in trades. It even correctly predicted Donald Trump’s victory. Recently, Polymarket saw $1.5 billion in transactions over the last month. It also holds $164 million in total value locked (TVL), according to data from DeFiLlama.
Polymarket’s Journey Back to the U.S.
ICE, a stock exchange operator valued at over $90 billion, is showing interest as Polymarket has been busy raising money. In September, Polymarket explored raising capital at a valuation of $9 billion to $10 billion. Its competitor, Kalshi, was also looking for a similar round around $5 billion.
So far, Polymarket has pulled in $300 million from well-known investors. These include Founders Fund, started by Peter Thiel, and 1789 Capital, which has ties to Donald Trump Jr. Trump Jr. himself joined Polymarket’s advisory board in August.
Polymarket has hit some bumps with regulators before. In 2022, it reached an agreement with the Commodity Futures Trading Commission (CFTC). This deal forced Polymarket to block U.S. users. It then had to operate as an offshore, unlicensed gambling platform, which many countries prohibit. However, investigations by the Department of Justice and the CFTC wrapped up in July. Polymarket’s founder, Shayne Coplan, posted on social media that “justice prevailed.”
Right after Trump’s election, the FBI even seized Coplan’s phone. This happened during a time of intense scrutiny. However, things have eased up under the new, more crypto-friendly administration. To clear regulatory hurdles, Polymarket bought a small U.S.-licensed derivatives exchange called QCEX in July. This move aims to allow a regulated relaunch in the U.S. market. The company also added new offerings, like prediction markets for company earnings and Bitcoin deposits to help with funding.
A New Chapter for Prediction Markets?
ICE’s investment would not just bring a lot of money to Polymarket. It would also lend the platform a lot of regulatory trust. This could bring together the stable setups of traditional exchanges with the new, crypto-native prediction markets. Such a link could bridge the gap between old-school finance and decentralized finance. This is especially true given competition from regulated platforms like Kalshi.
Neither ICE nor Polymarket immediately replied to requests for comment from news outlets. The potential announcement this Tuesday could mark a big moment. It might kick off a new era for how blockchain-based predictions fit into global financial markets.
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