1789 Capital, the investment firm where Donald Trump Jr. is a partner, is leading a $1 billion funding round for blockchain-based prediction market Polymarket, the Wall Street Journal reported on Monday, citing people familiar with the matter.
The firm is expected to provide about $300 million of the new financing, which would value Polymarket at $21 billion, according to the report. The investment would bring 1789 Capital’s total commitment to the platform to roughly $500 million, making it one of Polymarket’s largest financial backers.
The $21 billion valuation is higher than Polymarket’s valuation earlier this year. Bloomberg reported in April that the company was seeking an additional $400 million after completing a $600 million financing at a $15 billion valuation the previous month. The new valuation would also put Polymarket close to rival Kalshi, which had raised funding at a reported $22 billion valuation.
ICE Remains Polymarket’s Largest Disclosed Investor
Despite 1789 Capital’s growing commitment, Intercontinental Exchange remains Polymarket’s largest publicly disclosed investor. The exchange operator reported in its July 30 10-Q that its aggregate investment in Polymarket preferred stock stood at $1.6 billion.
ICE assigned the investment a carrying value of approximately $2 billion as of June 30. Its position represented about 22% of outstanding shares, or 14% on a fully diluted basis.
Regulatory Pressure Builds Around Prediction Markets
The new financing comes as prediction-market operators encounter regulatory challenges in the U.S. and other jurisdictions. Authorities in more than a dozen U.S. states have initiated legal action against Polymarket, Kalshi, or both involving sports event contracts. Polymarket has also been blocked or restricted in several countries.
Those regulatory concerns have extended to Polymarket’s banking relationships. JPMorgan Chase reportedly ended its direct banking relationship with Polymarket in October 2025 because of regulatory concerns, Reuters reported on Aug. 14. The bank, however, remained interested in a possible underwriting role if Polymarket eventually pursues an initial public offering (IPO).