Polymarket Acquires QCX for $112 Million to Re-Enter U.S. Market

Leading prediction market platform Polymarket has finalized its acquisition of derivatives exchange QCX for $112 million, a deal brokered in the context of its strategic effort to regain access to the U.S. market.

According to a company statement released Monday, the acquisition includes QC Clearing, a clearinghouse regulated by the Commodity Futures Trading Commission (CFTC). CEO Shayne Coplan stated this move paves the way for Polymarket to become a fully regulated entity and re-enter the U.S., a goal emphasized as “laying the foundation to bring Polymarket home.”

This effort coincides with the conclusion of regulatory probes by the U.S. Department of Justice and the CFTC, which had previously barred Polymarket from serving American users due to compliance issues. The platform had voluntarily restricted U.S. access in a settlement in 2022.

Despite the geographical limitation, Polymarket established itself as a prominent source for election-related insights in recent times. Its predictions regarding the withdrawal of former President Joe Biden and the subsequent victory of Donald Trump resonated widely. Trading volumes reached a record high of $2.6 billion in November, reflecting its significant user base and influence.

In June, an agreement was signed with X, marking Polymarket as X’s chosen official prediction platform for real-time information analysis. This collaboration involves further integrations and unique offerings.

Despite the platform’s growing influence and popularity, questions regarding the resolution methodology of its markets persist. A recent $237 million bet on a specific prediction about the Ukrainian President remained a point of discussion, highlighting ongoing scrutiny in the space.

The $112 million investment in QCX signifies Polymarket’s continued expansion within the prediction market sector, potentially setting the stage for further strategic initiatives facilitated by its regulated clearing infrastructure.