Polymarket is reportedly in discussions with investors to raise an additional $400 million in fresh funding, according to a Monday report from The Information.
The funding round is expected to value the platform at around $15 billion, sources familiar with the matter said.
The potential raise comes amid a surge of institutional interest in prediction markets. In late March, Intercontinental Exchange (ICE) invested $600 million into Polymarket, while rival platform Kalshi was valued at approximately $22 billion in its most recent funding round.
According to the report, Polymarket is also seeking to bring in additional strategic investors, with the total fundraising effort potentially reaching $1 billion.
Prediction markets have seen explosive growth since the 2024 US election, now regularly generating more than $10 billion in monthly trading volume across categories ranging from sports and politics to financial outcomes and cultural events.
The sector’s rapid growth has drawn increasing interest from major Wall Street players. In early March, Nasdaq’s options venue Nasdaq MRX filed plans to introduce cash-settled, binary-style contracts tied to the Nasdaq-100 index.
Cboe Global Markets is also preparing a prediction market-style product, while CME Group has partnered with FanDuel to allow trading on non-financial events.
Meanwhile, traditional finance heavyweights Charles Schwab and Citadel Securities have indicated they are exploring entry into the prediction markets space.
Despite the momentum, regulatory concerns continue to loom. Kalshi and others have faced scrutiny over alleged insider trading and market manipulation.
Kalshi is currently locked in a legal dispute with the Nevada Gaming Control Board after a lower court temporarily barred it from operating in the state. Regulators argue that its contracts amount to unlicensed gambling.
Paul Grewal has suggested the case could ultimately reach the Supreme Court of the United States, potentially setting a precedent for how prediction markets and event-based derivatives are regulated.
