Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, could deepen its involvement with Polymarket as the prediction market platform reportedly looks to raise fresh capital at a valuation exceeding $20 billion.
ICE has already built a significant position in Polymarket, with its stake reportedly valued at around $1.64 billion as of March. Now, ICE CEO Jeff Sprecher says the company is open to participating in another funding round if its involvement could help Polymarket successfully complete the raise.
Speaking to Bloomberg Television, Sprecher indicated that ICE would consider another investment if its participation gave the funding round additional credibility and support.
“We’ll look at it, if it would help the round in order to have our imprimatur on it, we are always interested,” Sprecher said.
ICE Could Back Polymarket Again
Polymarket is reportedly seeking new funding at a valuation of more than $20 billion. That would represent a major increase from the valuation attached to the company in October and highlights the rapid growth of investor interest in prediction markets.
Prediction platforms allow users to trade contracts based on the outcome of real-world events. These markets have expanded beyond elections and now cover sports, geopolitics, economic developments and other major events.
ICE has already participated in two Polymarket funding rounds. By March, its stake in the company was reportedly worth around $1.64 billion.
The exchange operator also invested another $600 million in Polymarket as part of an earlier commitment that could reach as much as $2 billion. At the time, ICE said the investment was not expected to have a significant impact on its financial results or capital return strategy.
However, Sprecher stressed that ICE does not see itself becoming a traditional venture capital investor.
“The reality is we’re not a venture firm,” he said.
Instead, ICE views its relationship with Polymarket as a strategic partnership where both companies can exchange information, expertise and knowledge.
That distinction matters because ICE operates some of the world’s largest financial exchanges and clearing businesses. Rather than building a broad portfolio of technology startups, the company appears interested in investments that have a strategic connection to its existing financial market infrastructure.
Polymarket Expands Its Infrastructure
Polymarket has also been strengthening the technology and infrastructure behind its prediction market business.
The company previously acquired DeFi infrastructure startup Brahma, adding to earlier acquisitions including QCEX and Dome. These deals have helped Polymarket expand its regulatory capabilities, developer infrastructure and onchain execution technology.
The expansion comes as prediction markets attract greater attention from both retail traders and institutional investors.
Interest accelerated following the 2024 U.S. presidential election, when prediction markets became an increasingly popular way for traders to express views on political outcomes.
Since then, the market has expanded into sports, economic events and geopolitical developments.
Institutional Interest in Prediction Markets Is Growing
The growing popularity of prediction markets has attracted significant investor capital.
Polymarket’s reported attempt to raise money at a valuation above $20 billion demonstrates how quickly the sector has developed. Rival prediction market platform Kalshi has also completed major fundraising rounds as the two companies compete for users, liquidity and distribution partnerships.
Robinhood has also become an important participant in the prediction market industry.
Robinhood CEO Vlad Tenev has argued that prediction markets should remain under federal oversight through the Commodity Futures Trading Commission rather than being regulated separately by individual states.
The question of regulatory authority has become increasingly important as states examine whether contracts linked to sports and elections should be treated as gambling products.
Prediction market companies, meanwhile, argue that federally regulated event contracts should remain under the CFTC’s jurisdiction.
Federal and State Regulators Take Different Approaches
The regulatory landscape remains divided across the United States.
North Carolina recently moved toward recognizing federal oversight of prediction markets. Governor Josh Stein signed legislation recognizing CFTC authority and creating a pathway for federally registered prediction market platforms, including Polymarket and Kalshi, to operate in the state beginning in 2027.
The legislation also introduced a 6% state tax on trading-fee revenue generated by these platforms.
Other states have taken a more restrictive approach, leading to legal disputes over whether federal derivatives laws override state gambling regulations.
Tenev believes prediction markets could remain a viable business even if the dispute eventually reaches the U.S. Supreme Court and states receive greater authority over certain contracts.
Rather than eliminating prediction markets entirely, such a ruling could establish clearer boundaries over which products can be offered and how they must be regulated.
Crypto Derivatives Expand on Regulated U.S. Platforms
The prediction market boom is happening alongside broader changes in the U.S. derivatives industry.
Regulators have started allowing additional crypto-related derivatives products to operate through regulated venues.
In May, Kalshi received approval to introduce regulated Bitcoin perpetual futures in the United States. Coinbase also received regulatory relief allowing certain crypto perpetual futures products to use assets such as Bitcoin, Ether and stablecoins as collateral.
These developments are bringing newer crypto derivatives closer to the traditional futures market dominated by established exchange operators.
However, ICE does not appear eager to follow every emerging crypto trading trend.
ICE Remains Cautious About Perpetual Futures
Sprecher also addressed perpetual futures, a product category that has become extremely popular in crypto markets.
Unlike traditional futures contracts, perpetual futures do not have an expiration date. Traders can maintain leveraged positions for extended periods as long as they meet margin requirements.
Platforms such as Hyperliquid have helped make perpetual futures one of the most heavily traded crypto derivatives.
Their use has also expanded beyond cryptocurrencies. During periods of heightened geopolitical tension, perpetual contracts have provided traders with another way to gain exposure to commodities such as oil when traditional futures markets were closed.
Despite their growing popularity, Sprecher said ICE is not currently focused on introducing similar products.
The reason comes down to ICE’s customer base.
Many ICE clients use traditional futures contracts primarily for hedging rather than short-term speculation. Futures contracts with different expiration dates create a forward pricing curve, helping businesses manage future costs and price risks.
Perpetual futures do not provide the same structure.
“Our client base is really a hedging client base, and there’s no forward pricing curve that is created by a perpetual future,” Sprecher said.
He described perpetual futures as primarily speculative products that do not currently match ICE’s distribution strategy or the needs of its core customers.
Polymarket’s Growth Could Strengthen ICE Partnership
Polymarket’s potential valuation of more than $20 billion shows how rapidly prediction markets are moving into the mainstream financial conversation.
For ICE, another investment would not necessarily represent a broader move into venture capital. Instead, it could strengthen an existing strategic relationship with one of the fastest-growing platforms in the prediction market sector.
At the same time, regulatory disputes between federal and state authorities remain an important challenge for the industry.
How those disputes are resolved could determine how Polymarket, Kalshi, Robinhood and other platforms expand across the United States.
For now, ICE appears willing to keep its options open. If Polymarket moves forward with another major funding round, the NYSE parent’s involvement could once again provide both capital and institutional credibility.
