NYSE-parent Intercontinental Exchange invests $600 million in Polymarket
FILE PHOTO: A screen displays the logo and ticker symbol for Intercontinental Exchange, Inc. on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 3, 2016. REUTERS/Brendan McDermid/File Photo
March 27 : Intercontinental Exchange said on Friday it had invested $600 million in prediction markets platform Polymarket, as the New York Stock Exchange parent expands into the fast-growing event-based trading segment.
The funding is part of the exchange operator's previously announced plan to invest up to $2 billion in Polymarket, the company said.
Prediction markets have shifted from a niche corner of crypto and academic finance into a rapidly growing trading segment in under two years, with volumes and user activity surging.
ICE said the investments in Polymarket are not expected to have a material impact on the exchange operator's financial results or capital return plans.
The $600 million investment is part of the prediction markets platform's latest funding round, and the valuation will be disclosed once completes its fundraising, ICE said.
Prediction markets represent a potential new frontier for exchanges in derivatives trading. Analysts say the products can draw a wider pool of retail traders and boost trading volumes, offering exchanges a chance to diversify revenue as competition intensifies in traditional futures and options markets.
