Polymarket Acquires QCEX for $112 Million to Re-enter US Market

Polymarket, a prominent player in the prediction market space, has announced the acquisition of derivatives exchange QCEX for $112 million. This strategic move, finalized on Monday, is set to re-establish Polymarket's presence in the US market, from which it had exited following a settlement with the Commodity Futures Trading Commission (CFTC) in 2022. The CFTC had imposed a $1.4 million fine on Polymarket at that time.

The acquisition is poised to expand Polymarket's user base in the United States, providing a regulated and compliant platform for trading prediction market contracts. According to a press release, this transaction signifies a major step towards broadening access to Polymarket's innovative platform within the US, offering users the confidence to trade with regulatory clarity.

Shayne Coplan, CEO of Polymarket, expressed enthusiasm about the acquisition, stating that it lays the groundwork for Polymarket to re-enter the US market as a fully regulated entity. This move will enable Americans to trade their opinions on various subjects through a compliant platform.

The announcement of the acquisition follows QCEX's filing with the CFTC to be designated as a contract market. This development comes at a time when prediction markets have gained significant traction. Last year, the CFTC lost a court case that sought to ban election markets in the US, paving the way for competitors like Kalshi to launch similar markets.

Sergei Dobrovolskii, the founder of QCEX, highlighted the potential of prediction markets to revolutionize how people access and understand information. He noted that while the prediction market was in its early stages when QCEX began seeking regulatory licenses over four years ago, the company has always believed in its transformative potential.