US sports betting platform DraftKings is tapping Polymarket as a clearinghouse for its new prediction market, an industry with a monthly trading volume of more than $4 billion.
“Congratulations to DraftKings on their acquisition of Railbird. We are proud to have Polymarket Clearing as their designated clearinghouse as they enter the prediction market space,” Polymarket CEO Shane Coplan He said In X’s post on Wednesday.
Railbird is a market prediction platform regulated by the Commodity Futures Trading Commission, which is regulated by DraftKings. acquired For an undisclosed amount on Tuesday.
A Polymarket clearinghouse is needed to verify trades, hold collateral and ensure that all bets or contracts are settled fairly and securely – preventing defaults, reducing counterparty risk and maintaining trust between participants.
The new DraftKings Predictions app is expected to debut as a mobile app in the “coming months”, covering all markets from finance and culture to entertainment.
“The product will have the flexibility to connect to multiple exchanges, enabling DraftKings to offer one of the broadest collections of markets to its customers,” DraftKings said.
This marks the first major cryptocurrency move by DraftKings since the non-fungible token market closed in July 2024 and reinforces Polymarket’s dominance in the predictions market segment.
Polymarket took over its clearinghouse by buying US derivatives exchange QCEX for $112 million in June, when it returned to the US market after more than two years.
Polymarket has made big moves this month
Polymarket has already seen a strong month of integrations, including Sam Altman’s identity-focused World App on Tuesday and cryptocurrency wallet MetaMask, which it expects to be integrated before the end of the year.
InterContinental Exchange, the parent company of the New York Stock Exchange, has also invested $2 billion in Polymarket, valuing the company at $9 billion amid increasing competition with Kalshi, which is also worth billions of dollars.
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Railbird was founded in 2021, but only received regulatory approval from the CFTC as a designated contract market in June.
Prediction markets appear in October
Prediction markets are hotter than ever, with… Polymarket and everything DefiLlama data shows that combined trading volume has already reached more than $4.63 billion during the first 23 days of October – breaking the previous record set last month of $4.17 billion.
Kalshi’s trading volume of $2.87 billion this month represents its highest monthly total to date.
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