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Shares of New York Stock Exchange parent, Intercontinental Exchange, rose more than 3% in the premarket after the company announced it took a $2 billion stake in prediction markets platform Polymarket.
The deal values Polymarket at approximately $8 billion, both companies said in a release.
“There are opportunities across markets which ICE together with Polymarket can uniquely serve and we are excited about where this investment can take us,” Intercontinental Exchange CEO Jeffrey Sprecher said in a statement.
Tune in at 8:40 a.m. ET as Polymarket CEO Shayne Coplan and ICE CEO Jeffrey Sprecher join CNBC’s “Squawk Box” to discuss the deal. Watch in real time on CNBC+ or the CNBC Pro stream.
The deal comes as prediction markets become more mainstream, with Polymarket rival Kalshi enjoying sharp trading volume increases thanks to the implementation of sports-related contracts. Prediction markets industry revenue may climb to $8 billion by 2030 as it takes market share from the sports gambling industry, according to analysis by Piper Sandler.
Polymarket, earlier this year, also secured an investment from 1789 Capital, which is backed by Donald Trump Jr. The company was also greenlit last month to launch in the U.S.
Polymarket founder and CEO Shayne Coplan wrote that,” by combining ICE’s institutional scale and credibility with Polymarket’s consumer savvy, we will be able to deliver world-class products for the modern investor.”
The deal was first reported by The Wall Street Journal.
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