Polymarket Acquires QCX for $112M, Re-enters U.S. Market

Polymarket, a cryptocurrency event prediction and derivatives trading platform, has announced its acquisition of a license to re-enter the U.S. market. The platform, founded in 2020 by an individual inspired by Friedrich Hayek's decentralized information system theory, allows users to trade securities representing the potential outcomes of various events using the Polygon blockchain and USDC stablecoin. Popular predictions on Polymarket include whether Jerome Powell will be removed from his position by 2025 and the release date of OpenAI's GPT-5.

The platform's activities in the legal gray area quickly attracted the attention of U.S. regulators. In January 2022, Polymarket reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC) for illegally operating a derivatives trading platform, leading to the suspension of its services in the U.S. market. During the 2022 U.S. elections, Polymarket's trading data showed a clear preference for Donald Trump's victory, contrary to mainstream polls. This attention led to increased scrutiny and legal actions, including searches of the founder's residence by the U.S. Department of Justice and the FBI.

Despite these challenges, Polymarket secured significant investments from prominent figures such as Vitalik Buterin, co-founder of Ethereum, and Peter Thiel, a leading venture capitalist. The platform's accurate predictions and growing user base have made it a notable player in the event prediction market.

In a recent development, Polymarket announced its acquisition of QCX, a derivatives exchange and clearinghouse, for 112 million dollars. QCX had applied for a trading license from the CFTC in 2022 and was granted approval in July 2023. This acquisition is seen as a strategic move to re-enter the U.S. market under a fully compliant and regulated framework. The founder expressed excitement about the platform's return to the U.S., highlighting the growing demand for accurate event predictions and the platform's role in distinguishing between signals and noise.

The acquisition has sparked speculation about Polymarket's financial capabilities, given its total funding of 70 million dollars since its inception. The platform reported that users had placed approximately 6 billion dollars in predictions on the platform in the first half of 2025, indicating strong user engagement and financial health. This move underscores Polymarket's resilience and strategic planning in navigating regulatory challenges and re-establishing its presence in the U.S. market.