American sports actions making a wager platform DraftKings is tapping Polymarket as the clearinghouse for its contemporary prediction market, an industry that clocks over $4 billion in month-to-month trading quantity.
“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 map,” Polymarket CEO Shayne Coplan said in an X put up on Wednesday.
Railbird is a Commodity Futures Trading Rate-regulated predictions market platform, which DraftKings obtained for an undisclosed quantity on Tuesday.
Polymarket’s clearinghouse is important to verify trades, attach collateral and guarantee all bets or contracts are settled moderately and securely — stopping defaults, decreasing counterparty bother, and asserting belief between participants.
The contemporary “DraftKings Predictions” is anticipated to debut as a cell app in “the arriving months,” maintaining all markets from finance and culture to leisure.
“The product can hang the flexibility to connect with extra than one exchanges, enabling DraftKings to give one in every of the broadest suites of markets to its prospects,” DraftKings said.
It marks the predominant predominant crypto transfer DraftKings has made since shuttering its nonfungible token marketplace in July 2024, extra cementing Polymarket’s dominance in the predictions market sector.
Polymarket obtained its clearinghouse throughout the acquisition of US derivatives trade QCEX for $112 million June, when it reentered the US market after higher than two years.
Polymarket made mountainous moves this month
Polymarket has already had a solid month of integrations, along side Sam Altman’s identity-centered World App on Tuesday and crypto wallet MetaMask, which expects its integration to happen sooner than the cease of the year.
The Recent York Stock Substitute’s parent — Intercontinental Substitute — moreover made a $2 billion investment in Polymarket, marking the company’s valuation up to $9 billion amid elevated rivals with Kalshi, which moreover has a multibillion-buck valuation.
Railbird used to be essentially based in 2021 nonetheless handiest acquired regulatory approval from the CFTC as a delegated contract market in June.
Prediction markets are popping in October
Prediction markets are hotter than ever, with Polymarket and Kalshi already combining for over $4.63 billion in trading quantity across the predominant 23 days in October — smashing final month’s outdated document of $4.17 billion, DeFiLlama data exhibits.
Kalshi’s $2.87 billion in trading quantity this month already marks its perfect month-to-month full to this point.
