Trump Jr.-linked 1789 Capital leads Polymarket $1B round
Donald Trump Jr.-linked 1789 Capital will reportedly lead a $1 billion investment round into Polymarket, committing about $300 million and valuing the blockchain prediction market at roughly $21 billion—just below rival Kalshi's $22 billion valuation, according to people familiar with the matter cited by the Wall Street Journal on Monday.
The reported deal would make Trump Jr.-linked 1789 Capital one of Polymarket's largest backers, with total exposure reaching about $500 million. For ongoing coverage of deals like this, see our Fintech & Crypto Alerts hub.
Key Takeaways
- 1789 Capital is expected to lead a $1 billion Polymarket round at a $21 billion valuation.
- Donald Trump Jr., a partner at the firm, would add roughly $300 million in fresh capital.
- ICE remains Polymarket's largest disclosed investor with $1.6 billion in preferred shares.
- More than a dozen U.S. states have sued Polymarket, Kalshi, or both over sports contracts.
- JPMorgan Chase reportedly cut banking ties with Polymarket in August amid regulatory scrutiny.
What Would 1789 Capital Invest in Polymarket?
1789 Capital, the investment firm where Donald Trump Jr. serves as a partner, is reportedly investing about $300 million as part of a broader $1 billion fundraising round, according to the Wall Street Journal report cited by CoinTelegraph.
If completed, the round would bring 1789 Capital's cumulative investment in Polymarket to approximately $500 million. That would elevate the Trump family-linked fund among the platform's most significant financial supporters, even as Intercontinental Exchange remains the largest disclosed shareholder.
How Does Polymarket's Valuation Stack Up Against Kalshi?
At a reported $21 billion valuation, Polymarket would sit just below Kalshi, its main U.S. competitor, which was recently valued at $22 billion. The gap marks a shift from April, when Polymarket was reportedly in talks to raise $400 million at a potential $15 billion valuation—well behind Kalshi at the time.
Prediction markets allow users to trade contracts tied to real-world outcomes, from elections to sports events. Polymarket operates on blockchain infrastructure, a distinction that has fueled both user growth and regulatory attention.
Who Are Polymarket's Biggest Existing Investors?
ICE, the parent company of the New York Stock Exchange, remains Polymarket's largest disclosed investor. In a July 30 filing, ICE reported a combined $1.6 billion investment in Polymarket preferred shares.
Those holdings carried a value of approximately $2 billion as of June 30 and represented about 22% of outstanding shares, or 14% on a fully diluted basis. The scale of ICE's stake underscores how traditional finance giants are positioning themselves in event-contract markets alongside newer entrants like 1789 Capital.
What Regulatory Headwinds Are Prediction Markets Facing?
Despite surging valuations, prediction markets face intensifying scrutiny. More than a dozen U.S. states have taken legal action against Polymarket, Kalshi, or both over sports event contracts, while authorities in several countries have blocked or restricted platform access.
On Aug. 14, JPMorgan Chase reportedly ended a banking relationship with Polymarket over regulatory concerns. The bank nevertheless signaled interest in a potential underwriting role should Polymarket pursue a public listing.
CoinTelegraph said it had approached 1789 Capital and Polymarket for comment. Neither firm had publicly confirmed the round at the time of reporting.