DraftKings has announced it will use Polymarket’s clearing services to support a new prediction-focused product.
Polymarket will handle the back-end processing through its clearinghouse. This includes verifying each trade, holding funds securely, and ensuring payouts are settled correctly once results are known.
This process reduces the chances of disputes between participants and helps build trust in the system.
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The upcoming product, titled “DraftKings Predictions”, is expected to launch as a mobile app.
According to DraftKings, it will be designed to connect with several marketplaces, which will give users a range of topics to choose from, including news and politics, finance, and entertainment.
This step also marks DraftKings’ first return to blockchain-related efforts since it closed its non-fungible token (NFT) platform in July 2024. For Polymarket, it further strengthens its position in the predictions market industry.
On October 21, DraftKings finalized the purchase of Railbird, a US-regulated prediction market platform overseen by the Commodity Futures Trading Commission (CFTC). This acquisition provides DraftKings with a legal foundation to operate in the US prediction market.
Meanwhile, Polymarket became able to operate a US-based clearing system after purchasing QCEX, a derivatives exchange, for $112 million in June.
Sam Altman’s identity-focused platform, World, has added access to prediction markets through a partnership with Polymarket. What did the company say? Read the full story.
