Inside the Controversial $1B Polymarket Raise Backed by Trump Jr.-Linked 1789 Capital

Ever wonder what happens when Monopoly money takes a wild ride into the world of cryptocurrency? Well, Donald Trump Jr.’s investment outfit, 1789 Capital, is diving headfirst into Polymarket—a blockchain-driven prediction market—by tossing in a hefty $300 million. This move not only boosts their stake to around $500 million but also puts them among the top backers of a platform valued at a staggering $21 billion. Now, here’s the kicker: while Polymarket is gearing up for massive growth, the regulatory winds swirling around prediction markets could turn this high-stakes game into a nail-biter. Curious how it all plays out amid legal battles and big backer drama? Let’s unpack the fascinating chess match between innovation, investment, and regulation. LEARN MORE.

Donald Trump Jr.-linked investment firm 1789 Capital is reportedly investing about $300 million in Polymarket, a blockchain-based prediction market.

1789 Capital, where Donald Trump Jr. is a partner, will make the $300 million investment as part of a $1 billion round that would value Polymarket at $21 billion, people familiar with the matter told the Wall Street Journal on Monday.

The investment would bring 1789 Capital’s total investment in Polymarket to about $500 million and make it one of the platform’s largest backers.

Cointelegraph has approached 1789 Capital and Polymarket for comment.

ICE remains Polymarket’s largest disclosed investor. In a July 30 10-Q filing, ICE said it had invested a combined $1.6 billion in Polymarket preferred shares. The holdings had a carrying value of approximately $2 billion as of June 30 and represented about 22% of outstanding shares, or 14% on a fully diluted basis.

Polymarket reportedly started talks to raise $400 million in fresh capital in April, when it was seeking to raise the funds at a potential $15 billion valuation, below the $22 billion valuation of its main competitor, Kalshi.

Prediction markets are facing increasing regulatory scrutiny in the US and worldwide. On Aug. 14, JPMorgan Chase reportedly ended a banking relationship with Polymarket over regulatory concerns but said it remains keen on a potential underwriting role should Polymarket attempt to go public.

More than a dozen US states have taken legal action against Polymarket, Kalshi, or both over sports event contracts, while authorities in several countries have also blocked or restricted access to Polymarket.

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