Intercontinental Exchange, the parent company of the New York Stock Exchange, has completed its investment in prediction market platform Polymarket, bringing the total to $1.6 billion. The funding forms part of an equity capital raise by Polymarket, and ICE has also announced plans to purchase up to $40 million worth of Polymarket securities from existing holders. The completion of this round fulfils the firm’s earlier obligations to the platform.
ICE had originally committed up to $2 billion to Polymarket in October 2025, at a valuation of $9 billion for the prediction market company. That commitment included an initial $1 billion investment, with the latest $600 million tranche and the planned securities purchase accounting for the remainder. The deal marks a significant milestone in ICE’s relationship with the platform.
Polymarket’s fundraising comes amid fierce competition with rival platform Kalshi. Kalshi raised $1 billion earlier this month in a round led by Coatue Management, valuing the company at $22 billion — double its $11 billion valuation from a December round backed by Paradigm, Andreessen Horowitz, Ark Invest, and Sequoia. Kalshi’s rapid growth has been fuelled in part by a court victory against the Commodity Futures Trading Commission in May 2025, which cleared the way for it to offer election contracts and scale from a $2 billion valuation in June 2025 to its current standing in under a year.
On the marketing front, Polymarket recently staged a three-day pop-up experience in Washington D.C. called the Situation Room, promoted as the world’s first physical venue dedicated to monitoring global prediction markets. The event received mixed reviews from journalists, with technology outlet Wired describing it as “a disaster” after technical difficulties left screens dark on opening night. The company later confirmed the monitors were operational and invited visitors to return.
The fresh capital arrives as prediction markets face increasing regulatory attention across the United States. Massachusetts Representative Seth Moulton this week banned his staff from trading on platforms such as Polymarket and Kalshi, citing concerns over potential insider trading. His move follows the bipartisan introduction of the PREDICT Act, which seeks to extend similar restrictions to members of Congress, senior officials, and their families.
Lawmakers have also proposed bans targeting specific categories of prediction market contracts. Senators have put forward measures to prohibit sports contracts and war-related markets, following controversy over profitable bets connected to U.S. military strikes on Iran and the capture of Venezuela‘s Nicolás Maduro. The proposals reflect broader unease about the ethical boundaries of prediction market activity. Separately, California Governor Gavin Newsom signed an executive order on Friday barring state officials and gubernatorial appointees from using insider information to bet on prediction markets.
The regulatory landscape presents a complex backdrop for both Polymarket and Kalshi as they continue to attract substantial investment and expand their platforms. How lawmakers ultimately shape the rules governing prediction markets could have significant implications for the sector’s growth trajectory. Both companies are now well-capitalised to navigate the evolving environment, though the outcome of pending legislation remains uncertain.
Originally reported by Decrypt.
