Published on: October 7, 2025, at 10:45 AM.
Updated on: October 7, 2025, at 10:45 AM.
- Polymarket’s valuation skyrockets to between $9 billion and $10 billion
- Intercontinental Exchange invests $2 billion in Polymarket at an $8 billion pre-investment valuation
- ICE owns the New York Stock Exchange
The valuation of prediction markets leader Polymarket has surged up to $10 billion following a significant $2 billion investment from the Intercontinental Exchange (NYSE: ICE).
The owner of the New York Stock Exchange has struck a deal with Shayne Coplan’s Polymarket to invest $2 billion at a pre-money valuation of $8 billion. After this investment, Polymarket is now estimated to be valued between $9 billion and $10 billion, validating earlier reports that the company was seeking to raise funds within that valuation spectrum.
In addition to the investment, ICE will serve as a global distributor of Polymarket’s event-driven analytics, providing valuable sentiment indicators on relevant market topics. Furthermore, both parties have agreed to collaborate on forthcoming tokenization projects,” as stated in the announcement.
ICE confirmed that its investment in Polymarket will be made in cash and will not impact the exchange’s financial results for 2025 or its plans to distribute capital back to shareholders. The financial services firm intends to elaborate on its Polymarket investment during its third-quarter earnings call scheduled for October 30.
Polymarket’s Valuation Jumps Ninefold in Just Four Months
Even at a conservative valuation of $9 billion, ICE’s investment signifies an astonishing leap in just a few months.
In June, rival prediction market Kalshi secured $185 million in Series C funding, valuing it at $2 billion. Around the same period, Polymarket completed a capital raise that placed its worth at $1 billion. Fast-forward to October, and Polymarket has soared to a valuation at least nine times higher than that four months ago.
This remarkable growth comes despite Polymarket currently lacking authorization to operate in the U.S., which limits its ability to offer football-related event contracts to potential clients in that market. These contracts have proven highly lucrative for competitors like Kalshi, leading to record transaction volumes. However, Polymarket is anticipated to resume operations in the U.S. soon and has recently been hinting at football betting options.
After being valued at $2 billion in June, Kalshi is reportedly considering additional financing that could assess its worth at $5 billion.
Blurring Lines Between Prediction and Financial Markets
Professional investors, including hedge fund managers, are increasingly becoming active in prediction markets. This trend contributes to the confidence many traders and retail investors have in the accuracy of these markets, as they believe that professional investors put their own capital and reputations on the line through trades on platforms like Kalshi and Polymarket.
The partnership between ICE and Polymarket further blurs the distinction between conventional finance and derivatives, which some analysts argue are scarcely different from sports betting. In June, CME Group (NASDAQ: CME) and Flutter Entertainment’s (NYSE: FLUT) FanDuel announced a collaboration on event contracts linked to economic developments, equity index trajectories, and other financial instruments. The contracts from CME and FanDuel are designed to act similarly to micro-betting in sports.
“This partnership with ICE marks a significant move toward mainstreaming prediction markets in the financial industry,” stated Coplan in the announcement.
Notable investors in Polymarket include Peter Thiel’s Founders Fund, Donald Trump Jr., and Ethereum co-founder Vitalik Buterin. Trump Jr.’s firm, 1789 Capital, made a noteworthy multimillion-dollar investment in Polymarket in August, while he holds advisory roles at both Kalshi and Polymarket.