Prediction market platforms Kalshi and Polymarket are discussing potential fundraising rounds that could value each company at around $20 billion.
If completed at that level, the deals would roughly double their valuations as of late 2025. The discussions remain early and may not lead to finalized investments, according to the Wall Street Journal.
Prediction markets allow users to trade contracts tied to real-world events, with categories including sports, politics, elections and more. Traders buy and sell these contracts based on what they think will happen. Basically, it allows users to monetize information about world events.
Kalshi already operates in the US under the approval of the Commodity Futures Trading Commission. Founded in 2018 by Tarek Mansour and Luana Lopes Lara, it raised $1 billion at a valuation of $11 billion last December.
The company recently reached annual revenue of about $1.5 billion, according to the WSJ report, citing people familiar with the business.
Polymarket, founded in 2020 by Shayne Coplan, was valued at $9 billion in October after Intercontinental Exchange agreed to invest up to $2 billion in the platform.
Neither platform immediately responded to requests for comment from CoinDesk.
Both platforms are leading the sector as prediction markets have become the latest hype for traders.
According to a Dune dashboard, open interest on Kalshi is over $400 million, while on Polymarket it is at $360 million. The third largest market, Opinion, is $36 million.
Similarly, weekly notional volume (aggregate underlying value of all traded prediction contracts) on Polymarket was $1.9 billion last week, and on Kalshi, $1.87 billion, according to Dune data. Opinion saw a weekly volume of $150 million, down from over $1.2 billion before the token launch.
The sector has become so popular that companies including Coinbase and Robinhood have entered the prediction market. In fact, Wall Street giants Nasdaq and Cboe recently said they are considering rolling out yes-or-no “binary bets” for traders in the direction of traditional markets, similar to predictive market bets.
Read more: Prediction market firms could earn $10 billion in annual revenue by 2030, Citizens Bank says
