The Clearing Company, a venture initiated by former Polymarket prediction platform alumni, has successfully secured $15 million in seed funding to establish a compliant on-chain prediction market aimed at widespread use.

The funding round was spearheaded by Union Square Ventures, with contributions from Haun Ventures, Variant, Coinbase Ventures, Compound, Rubik, Earl Grey, Cursor Capital, Asylum, and several other investors, the company announced.

Established by ex-executives from Polymarket—Toni Gemayel, Niraek Jain-Sharma, Liam Kovatch, along with Nick Beattie, Daniel Ramirez, Nira Eyal, Nick Emmons, and Jayavardhan Munnangi—the company aims to create a platform that prioritizes compliance, featuring know-your-customer (KYC) measures, anti-money laundering protocols, geographic restrictions, fund segregation, and on-chain audits.

Polymarket, which made a name for itself with cryptocurrency-based prediction markets, incurred a $1.4 million fine from the U.S. Commodity Futures Trading Commission (CFTC) in 2022 and subsequently withdrawn from the U.S. market. However, it is poised to re-enter after acquiring QCEX, a CFTC-registered Designated Contract Market.

The Clearing Company aims to be part of a fresh wave of prediction platforms striving for regulatory approval in the United States. Competing start-up Novig secured $18 million recently, while FanDuel and CME Group are developing a federally regulated platform, and DraftKings is considering entering this space.

“Traditional polls are slow and often biased… prediction markets promote honesty as being incorrect results in tangible costs,” said Gemayel.

The company presents its strategy as “on-chain, permissionless, and regulated markets,” suggesting that prediction markets offer “a novel form of news capable of providing real-time intelligence signals for investors, institutions, and the general audience.