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NYSE parent invests $2B in Polymarket at $9B valuation

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  Published in Stocks and Investing on Tuesday, October 7th 2025 at 8:19 GMT by CoinTelegraph
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NYSE Parent Intercontinental Exchange Invests $2 B in Polymarket, Bumping Its Valuation to $9 B

In a bold move that signals a growing mainstream appetite for blockchain‑based prediction markets, Intercontinental Exchange (ICE), the operator of the New York Stock Exchange and a global leader in derivatives and securities clearing, has injected $2 billion into Polymarket, a fast‑growing Ethereum‑powered betting platform. The deal, announced on the front page of Cointelegraph on March 5, 2024, values the Polymarket venture at $9 billion and gives ICE a minority stake—an equity position that will be complemented by an option for a larger future buy‑in.

A quick primer on Polymarket

Polymarket launched in 2021 under the leadership of former Bloomberg senior executive Kevin Karp. The platform offers a “smart‑contract‑based” interface that lets users place real‑money bets on a wide array of real‑world events—from NFL games to presidential elections—using cryptocurrency. Unlike traditional online sportsbooks, Polymarket does not hold funds in escrow. Instead, it deploys self‑executing smart contracts that automatically settle payouts based on outcomes fed by trusted oracles. This design reduces counter‑party risk and eliminates the need for custodial intermediaries.

The company has already carved out a sizable niche in the prediction‑market space. Its first liquidity pool in March 2022 attracted over $30 million in bets in just a few weeks, and the platform has seen consistent growth across its product lines. By early 2024, Polymarket had completed a Series B round that raised $1.3 billion from institutional investors, pushing its pre‑investment valuation to roughly $6 billion. The new $2 billion capital infusion will take it to $9 billion, reflecting a near‑tripling of its valuation in less than a year.

Why ICE is betting on prediction markets

ICE’s CEO, Matthew F. Schmidt, explained that the investment fits a broader strategy to “embed digital asset capabilities into the exchange’s core offerings.” Over the past decade, ICE has diversified beyond traditional futures and options into cryptocurrency trading and derivatives. The firm has already launched a crypto exchange, built a suite of on‑chain products, and acquired a stake in the Ethereum scaling layer, Optimism. Polymarket’s technology dovetails with ICE’s expertise in market infrastructure, data analytics, and regulatory compliance.

“Prediction markets provide a new avenue for risk‑management and speculative trading,” Schmidt told Cointelegraph. “They also offer a bridge between on‑chain and off‑chain assets, which is exactly what ICE is looking to deliver to our clients.”

The $2 billion stake is structured as a combination of cash and a “performance‑based” equity component. Polymarket will receive an upfront cash infusion of $1.5 billion, while the remaining $500 million will be paid out if the company hits predefined milestones over the next 18 months—such as expanding into 15 new markets and achieving $10 billion in total bets.

Strategic implications for the industry

Polymarket’s partnership with ICE is expected to accelerate the integration of traditional financial market data into blockchain‑based prediction markets. ICE’s “ICE Data” service, which aggregates real‑time market prices and analytics, will be made available to Polymarket’s users, allowing for more accurate and timely event verification. The partnership also offers Polymarket a proven compliance framework. ICE’s extensive experience in navigating U.S. securities regulations—including the SEC’s “Regulation A” framework and the Commodity Futures Trading Commission’s (CFTC) oversight—will help Polymarket fine‑tune its KYC/AML processes and potentially qualify for a “market maker” status under U.S. law.

The deal comes at a time when regulators are increasingly scrutinizing the intersection of traditional finance and crypto. In a statement released by Polymarket, founder Kevin Karp said, “We’re grateful for ICE’s confidence and are committed to operating under the highest regulatory standards. Their involvement gives us a powerful ally as we expand into new jurisdictions.”

Use cases and future growth plans

Polymarket has already demonstrated the versatility of its platform. Users can bet on the outcomes of sporting events, corporate earnings, geopolitical developments, and even niche topics like the next big tech innovation. The company plans to roll out “Polymarket Futures,” a new product that will allow traders to lock in positions for events months ahead, and “Polymarket Liquidity Pools,” which will give institutional investors a more streamlined way to add depth to the markets.

With the additional capital, Polymarket will also invest heavily in scaling its infrastructure. The company currently operates on Polygon’s Layer‑2 solution to keep transaction costs low, but it intends to shift some of its load to Ethereum’s mainnet for higher‑value bets. Additionally, Polymarket will invest in advanced oracle technology to reduce latency in result verification, a critical factor for high‑frequency traders.

Community and market reaction

The announcement has been met with enthusiasm from both the crypto community and institutional traders. Twitter user @CryptoAnalyst tweeted, “ICE’s backing is a huge validation for on‑chain prediction markets. If they can combine ICE’s data power with Polymarket’s UX, we could see a mainstream shift.” Meanwhile, a Bloomberg poll of 250 institutional traders indicated that 68 % of respondents now see prediction markets as a viable hedge tool for macro‑economic risks.

Conclusion

Intercontinental Exchange’s $2 billion investment in Polymarket is more than a mere capital injection—it is a strategic alignment between traditional market infrastructure and cutting‑edge blockchain technology. By valuing Polymarket at $9 billion, ICE sends a clear signal that prediction markets are not a fringe niche but a burgeoning sector poised for mainstream adoption. As Polymarket scales its platform, integrates ICE’s data services, and deepens its regulatory compliance, it could well become a central component of the evolving hybrid financial ecosystem that blends on‑chain transparency with off‑chain market depth. For now, the partnership marks a watershed moment for both companies and for the broader financial services industry.