American sports betting giant DraftKings has selected Polymarket as the clearinghouse for its forthcoming prediction market, following the acquisition of Railbird earlier this week.

“Congrats to DraftKings on their acquisition of Railbird. We’re proud for Polymarket Clearing to be their designated clearinghouse as they enter the prediction market space,” Polymarket CEO Shayne Coplan mentioned in a post on X on Wednesday.

“Congratulations to DraftKings on their acquisition of Railbird. We are proud that Polymarket Clearing has been chosen as their clearinghouse as they enter the prediction market.”

Railbird, a prediction market platform regulated by the Commodity Futures Trading Commission (CFTC), was purchased by DraftKings on Tuesday for an undisclosed sum.

Polymarket’s role will ensure trades are verified, hold collateral, and maintain the integrity of bet settlements, thus preventing defaults, minimizing counterparty risk, and nurturing trust among participants.

The new DraftKings Predictions will launch as a mobile app in the coming months, promising coverage across markets from finance and culture to entertainment.

“This platform will connect to multiple exchanges, allowing DraftKings to provide a broad selection of markets for its users,” stated DraftKings.

This move signifies DraftKings’ first substantial crypto-related initiative since closing its NFT marketplace last July, further reinforcing Polymarket’s leadership in the predictions market.

Polymarket acquired its clearinghouse through the purchase of QCEX, a US derivatives exchange, for $112 million in June, marking its reentry into the U.S. market following a two-year hiatus.

Polymarket Expands Its Reach

Polymarket has enjoyed a robust month of integrations, including a notable association with Sam Altman’s identity-focused World App this past Tuesday, and an imminent integration with the crypto wallet MetaMask, highlighting its growing influence.

The Intercontinental Exchange, which oversees the New York Stock Exchange, also made a significant $2 billion investment in Polymarket, boosting its valuation to $9 billion amid rising competition from Kalshi, which also boasts a multibillion-dollar valuation.

Prediction markets are thriving currently, as Polymarket and Kalshi have combined for over $4.63 billion in trading volume within the first 23 days of October, surpassing the previous month’s record.

Monthly trading volume on Kalshi since July 2021. Source: DeFiLlama

Kalshi is showing impressive trading figures as well, with the current month marking its highest total to date.

Related: South Park critiques prediction markets in its latest episode.

Railbird, established in 2021, only secured its regulatory approval as a designated contract market from the CFTC in June.