Polymarket hires Chainalysis as it pursues $15B valuation

Polymarket has hired blockchain analytics firm Chainalysis to detect and deter insider trading as it seeks a $15 billion valuation and signoff from the Commodity Futures Trading Commission.

The hire brings third-party transaction monitoring and investigative tools to Polymarket’s prediction market, which lets users trade positions on political, economic and other real-world events. The software maps blockchain addresses, traces the flow of funds and generates alerts for suspicious patterns such as coordinated trading, wash trading or links to known bad actors.

Polymarket plans to integrate Chainalysis’ tools to monitor user accounts, flag anomalous trades and produce records for internal reviews or to provide regulators if requested. The company expects the added surveillance will strengthen compliance as it pursues growth and regulatory clearance.

Prediction markets can be vulnerable to insider trading when participants with access to nonpublic information trade before public disclosure. Regulatory scrutiny of crypto trading platforms has increased, and several market operators have expanded surveillance and reporting controls.

Polymarket operates markets denominated in cryptocurrency and has sought clearer regulatory status in the United States. The company is pursuing formal recognition from the CFTC to operate within the agency’s framework, a step executives described as necessary to scale and attract institutional capital.

Chainalysis is used by exchanges, custodians and government agencies to trace on-chain activity and support compliance programs. The company framed the partnership as part of a broader compliance build-out tied to its valuation target and CFTC engagement.

Polymarket expects the Chainalysis integration to create an auditable trail of trading activity and to provide records that could be used in regulatory reviews or enforcement inquiries.