US sports betting platform DraftKings is turning to Polymarket as a clearinghouse for its new prediction market, an industry that sees more than $4 billion in monthly trading volume.
“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 Shayne Coplan said in an X post on Wednesday.
Railbird is a prediction market platform regulated by the Commodity Futures Trading Commission, which DraftKings acquired for an undisclosed amount on Tuesday.
The Polymarket clearinghouse is necessary to verify transactions, maintain collateral and ensure that all bets or contracts are settled fairly and securely, avoiding defaults, reducing counterparty risk and maintaining trust between participants.
The new “DraftKings Predictions” 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, allowing DraftKings to offer one of the broadest sets of markets to its customers,” DraftKings said.
It marks the first major crypto move DraftKings has made since closing its non-fungible token market in July 2024 and further cements Polymarket’s dominance in the prediction market sector.
Polymarket acquired its clearinghouse by purchasing US derivatives exchange QCEX for $112 million in June, as it re-entered the US market after more than two years.
Polymarket made big moves this month
Polymarket has already had a strong month of integrations, including Sam Altman’s identity-focused World App on Tuesday and crypto wallet MetaMask, which expects its integration to take place before the end of the year.
The New York Stock Exchange’s parent company, Intercontinental Exchange, also made a $2 billion investment in Polymarket, raising the company’s valuation to $9 billion amid increased competition from Kalshi, which also has a multibillion-dollar valuation.
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Railbird was founded in 2021, but only gained regulatory approval from the CFTC as a designated contract market in June.
Prediction markets are rebounding in October
Prediction markets are hotter than ever, and Polymarket and Kalshi have already combined to generate more than $4.63 billion in trading volume during the first 23 days of October, breaking last month’s previous record of $4.17 billion, DefiLlama data shows.
Kalshi’s $2.87 billion in trading volume this month already marks its highest monthly total to date.
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