Kalshi and Polymarket aim for $20 billion valuations during fundraising discussions, according to WSJ.

Kalshi, authorized by the Commodity Futures Trading Commission, was recently valued at $11 billion, while Polymarket was assessed at $9 billion.

What to know:

• Kalshi and Polymarket are contemplating fundraising rounds that might value each firm at around $20 billion, thereby doubling their valuations from late 2025.
• Kalshi, sanctioned by the Commodity Futures Trading Commission, was last appraised at $11 billion, while Polymarket was estimated at $9 billion.
• Both platforms are prominent in the prediction markets industry, with Kalshi’s open interest exceeding $400 million and Polymarket’s at $360 million, along with significant weekly trading volumes.

Prediction market platforms Kalshi and Polymarket are in talks regarding potential fundraising rounds that could value each entity at approximately $20 billion.

Should these discussions culminate successfully, the agreements would effectively double their valuations from late 2025. These talks are still in the preliminary stages and may not result in finalized investments, as reported by the Wall Street Journal.

Prediction markets enable users to trade contracts linked to actual events, spanning categories such as sports, politics, elections, and others. Traders engage in buying and selling these contracts based on their predictions of future outcomes. This mechanism allows users to capitalize on information regarding global occurrences.

Kalshi is currently operational in the United States with approval from the Commodity Futures Trading Commission. Established in 2018 by Tarek Mansour and Luana Lopes Lara, it secured $1 billion at an $11 billion valuation in December last year.

The firm recently achieved an annualized revenue run rate of approximately $1.5 billion, according to a WSJ report citing sources familiar with the matter.

Polymarket, founded in 2020 by Shayne Coplan, was valued at $9 billion in October after Intercontinental Exchange committed to invest up to $2 billion in the platform.

Neither of the platforms provided immediate responses to inquiries from CoinDesk.

Both entities are at the forefront of the sector, as prediction markets have emerged as a new trend among traders.

According to a Dune dashboard, Kalshi’s open interest is around $400 million, while Polymarket’s is $360 million. The third-largest market, Opinion, stands at $36 million.

Moreover, the weekly notional volume (the total underlying value of all prediction contracts traded) on Polymarket reached $1.9 billion last week, while Kalshi recorded $1.87 billion, based on Dune data. Opinion noted a weekly volume of $150 million, a decline from over $1.2 billion prior to its token launch.

The popularity of the sector has attracted companies, such as Coinbase and Robinhood, into the prediction market space. Notably, Wall Street giants Nasdaq and Cboe have recently indicated they are considering introducing yes-or-no “binary bets” for traders on the movements of traditional markets, paralleling prediction-market betting.

Read more: Prediction market firms could be making $10 billion in yearly revenue by 2030, Citizens Bank says