American sports betting platform DraftKings is set to collaborate with Polymarket to function as the clearinghouse for its new prediction market platform following the recent acquisition of Railbird. This prediction market industry sees over $4 billion in monthly trading volume.
“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,”
said Shayne Coplan, CEO of Polymarket, in a post on X this Wednesday.
Railbird, regulated by the Commodity Futures Trading Commission (CFTC), was acquired by DraftKings for an undisclosed sum earlier this week. Polymarket’s clearinghouse will play a critical role in verifying trades, holding collateral, and ensuring fair settlement of all bets or contracts, thus preventing defaults and minimizing counterparty risk.
Source
Source: Shayne Coplan
The upcoming “DraftKings Predictions” app is expected to launch in the coming months, offering markets that span finance, culture, and entertainment. DraftKings expressed that the new product will have the flexibility to connect with multiple exchanges, thus providing a comprehensive range of market options for users.
This move marks DraftKings’ first significant engagement with cryptocurrency since the closure of its NFT marketplace in July 2024 and reinforces Polymarket’s strong position within the prediction market sector.
Polymarket secured its clearinghouse through the $112 million acquisition of the US derivatives exchange QCEX back in June, marking its re-entry into the US market after more than two years.
Recent Developments at Polymarket
Polymarket has made significant strides this month with several key integrations, including Sam Altman’s identity-oriented World App and an anticipated integration with the popular crypto wallet MetaMask by year’s end. Meanwhile, Intercontinental Exchange, the parent of the New York Stock Exchange, has made a substantial investment of $2 billion into Polymarket, boosting the company’s valuation to $9 billion amid increased competition from Kalshi, which itself holds a multibillion-dollar valuation.
October has proven to be a bustling month for prediction markets, with both Polymarket and Kalshi collectively reaching over $4.63 billion in trading volume in the first 23 days, surpassing the previous month’s record of $4.17 billion, according to DefiLlama data. Kalshi has recorded a remarkable $2.87 billion in trading within this month alone.
