Decentralized Prediction Market Platform The Clearing Company Launches with $15M Seed Funding

A group of former Polymarket employees has launched The Clearing Company, a new on-chain prediction market platform, after securing $15 million in seed funding. The platform aims to combine the openness of decentralized finance with compliance mechanisms that can stand up to regulatory scrutiny. The Clearing Company is led by Toni Gemayel, a former head of growth at Polymarket, and is backed by prominent investors including Union Square Ventures and Coinbase Ventures. The platform plans to launch a fully functional platform that enables users to create and participate in markets spanning global events, sports, politics, and financial outcomes.

A group of former Polymarket employees has launched The Clearing Company, a new on-chain prediction market platform, after securing $15 million in seed funding. The platform aims to combine the openness of decentralized finance with compliance mechanisms that can stand up to regulatory scrutiny. The Clearing Company is led by Toni Gemayel, a former head of growth at Polymarket, and is backed by prominent investors including Union Square Ventures and Coinbase Ventures.

The Clearing Company's platform will enable users to create and participate in markets spanning global events, sports, politics, and financial outcomes. Toni Gemayel emphasized that while prediction markets have existed for centuries, the internet age makes their collective intelligence more powerful. "Polls are too slow and rife with bias," he wrote, adding that markets incentivize honesty because being wrong carries a real cost.

The startup aims to build on-chain, permissionless prediction markets designed to meet regulatory standards while remaining accessible to retail users. Prediction markets allow participants to trade contracts tied to real-world outcomes, producing collective forecasts with financial incentives for accuracy. While platforms such as Polymarket have operated in regulatory gray areas, The Clearing Company suggests that it is positioning itself as a compliant alternative with transparent infrastructure and liquidity mechanisms.

Union Square Ventures, which has previously invested in Web3 firms including Coinbase and Uniswap, is betting that a regulated approach could make decentralized forecasting tools mainstream. The company has not disclosed a launch timeline for its platform but emphasized its focus on designing products that balance simplicity with compliance.

The Clearing Company's launch coincides with a broader trend of regulatory clarity and technological advancements in the prediction market sector. In 2025, prediction markets have emerged as a transformative force in global finance, redefining how markets price uncertainty. At the forefront of this evolution are two platforms: Kalshi, a CFTC-regulated exchange, and Polymarket, a decentralized, token-driven ecosystem. Their contrasting governance models and regulatory trajectories offer critical insights for investors navigating this high-growth sector.

For investors, the choice between Kalshi and Polymarket hinges on risk tolerance and market outlook. Kalshi's centralized model offers predictable growth in a regulated environment, appealing to those wary of crypto's inherent volatility. Polymarket, however, represents a higher-risk, higher-reward proposition. Its token-based governance and global reach position it to capitalize on the democratization of financial markets, particularly in regions like Singapore and the UAE.

The CFTC's 2025 CLARITY Act, which classifies most cryptocurrencies as commodities, is a game-changer. By placing digital assets under the CFTC's jurisdiction, the law creates a unified regulatory framework for prediction markets and crypto derivatives. This shift could accelerate Polymarket's U.S. expansion while reinforcing Kalshi's role as a compliant alternative.

Conclusion: Strategic Allocation in a Fragmented Market

Investors should adopt a diversified approach, allocating capital to both centralized and decentralized platforms. Kalshi's regulatory moat makes it a defensive play, while Polymarket's innovation potential justifies a speculative position. Monitoring global regulatory trends—particularly in Singapore, the UAE, and the U.S.—will be critical to navigating this sector's volatility.

As prediction markets mature, the interplay between governance models and regulatory frameworks will define their success. For now, the race between Kalshi's institutional credibility and Polymarket's decentralized agility remains one of the most compelling narratives in finance.

References:
[1] https://blockworks.co/news/onchain-prediction-market-funding
[2] https://www.ainvest.com/news/rise-prediction-markets-kalshi-polymarket-decentralized-governance-regulatory-risk-future-speculation-2508/
[3] https://www.ainvest.com/news/rising-power-prediction-markets-polymarket-strategic-momentum-trump-jr-backing-signal-high-conviction-play-2025-2508/