ICE Invests $2B in Polymarket, Valuing It at $9B

Intercontinental Exchange (ICE), the owner of the 233-year-old New York Stock Exchange, is investing up to $2 billion in prediction market platform Polymarket, giving the startup a post-money valuation of $9 billion. According to Polymarket CEO Shayne Coplan’s announcement on Tuesday, the partnership will enable distribution of Polymarket’s data to “thousands of financial institutions around the world” through ICE’s established financial infrastructure. Although the press release described the investment as worth “up to $2 billion,” a Polymarket spokesperson confirmed it was accurate to characterize it as a $2 billion investment.

The deal represents a significant milestone for Polymarket, which was founded in 2020 and has rapidly evolved from a little-known startup to a Wall Street-valued company. Coplan noted on X that “the past two years have been surreal” as the company gained institutional recognition. The investment follows ICE’s statement that the deal reflected an $8 billion pre-investment valuation for Polymarket, underscoring the substantial financial commitment from one of the world’s most established financial infrastructure providers.

ICE founder, Chairman, and CEO Jeffrey Sprecher is focused on using blockchain technology to augment the financial system more broadly, according to Coplan’s statements. “Jeff is all-in on utilizing his assets, including NYSE, to usher in a new financial era of tokenization,” Coplan said, emphasizing ICE’s “institutional scale and credibility” in driving this transformation. The announcement specifically noted that ICE and Polymarket have agreed to work on “future tokenization initiatives” that use digital representations of real-world assets.

This strategic alignment comes as Polymarket’s platform, which reflects price predictions across politics, sports, and culture, gains mainstream traction. Last year, the company saw significant adoption when U.S. election data was incorporated into Bloomberg’s Terminal service. Sprecher himself called Polymarket a “forward-thinking, revolutionary company” that’s pioneering change in the financial industry, indicating strong institutional belief in blockchain’s potential to transform traditional finance.

The ICE deal represents another high-profile backing for Polymarket, following several significant partnerships established throughout the year. In June, Polymarket became X’s official prediction market following endorsements from tech CEO Elon Musk, the world’s richest man. Then in August, Donald Trump Jr. joined Polymarket as an advisor following an investment from 1789 Capital, where he serves as a partner, further elevating the platform’s visibility.

Meanwhile, Polymarket’s biggest competitor, Kalshi, reached a $2 billion valuation following a $185 million funding round in June. Unlike Polymarket, Kalshi isn’t primarily powered by blockchain technology, though it does accept cryptocurrency payments. Recent data showed Kalshi demonstrating signs of surpassing Coplan’s firm in terms of trading volume last month, highlighting the competitive dynamics in the prediction market space.

Coplan’s promise that early supporters “will not be forgotten” has sparked speculation around a potential airdrop, adding to the excitement surrounding Polymarket’s rapid ascent from obscurity to becoming a prized asset on Wall Street through its blockchain-powered prediction market platform.