Donald Trump Jr.’s 1789 Capital has agreed to lead a $1 billion Polymarket funding round with roughly $300 million that would value the prediction market platform at $21 billion.

Bloomberg first reported the new financing, while 1789 Capital spokeswoman Alexa Henning confirmed the investment details on Monday. The venture capital firm previously put approximately $200 million into Polymarket, which is currently valued at close to $15 billion.

The proposed financing would give Polymarket another sharp valuation increase after the company spent the past year raising capital from investors ranging from venture firms to established financial market operators.

1789 Capital deepens its investment in Polymarket

The new $300 million commitment would take 1789 Capital’s total disclosed investment in Polymarket to roughly $500 million across its funding rounds.

Trump Jr. is a partner at 1789 Capital and joined Polymarket’s advisory board last year following the firm’s earlier investment. At the time, crypto.news reported that the appointment came as Polymarket was working to restore access to the U.S. market after years of regulatory restrictions.

His involvement extends across competing prediction market companies. Trump Jr. joined Kalshi as an adviser last year and received company shares worth more than $300,000, according to the New York Times.

Speaking to the Times this year about his investments, Trump Jr. said he was acting as a private citizen and had “no policy position and no role within the administration whatsoever.”

1789 Capital itself has expanded quickly. The investment firm managed a few hundred million dollars two years ago but now oversees more than $3 billion.

Its portfolio has included private companies such as SpaceX, defense technology company Anduril, AI chipmaker Cerebras and artificial intelligence startup Reflection AI. Some companies backed by the firm hold large U.S. government contracts, while Polymarket has operated during a period of major changes in the federal approach to prediction markets.

Polymarket valuation has climbed above $20 billion

The $21 billion valuation attached to the planned round comes less than two weeks after reports that Polymarket was seeking capital at a valuation exceeding $20 billion.

Intercontinental Exchange CEO Jeff Sprecher said in August that the New York Stock Exchange parent could consider joining another Polymarket financing. ICE had accumulated a $1.64 billion stake in the company by March, while Sprecher said its relationship with Polymarket involved exchanging information and expertise.

The potential new ICE investment followed several large commitments from the exchange operator.

ICE announced an investment of up to $2 billion in October 2025, initially valuing Polymarket at $8 billion before the investment. The agreement gave ICE rights to distribute Polymarket’s event-driven data to institutional clients around the world.

In March, the NYSE parent invested another $600 million as part of that commitment. ICE said at the time that the funding formed part of Polymarket’s fundraising round and would not have a material effect on the exchange operator’s financial results or capital return plans.

Polymarket’s latest proposed valuation would be more than twice the $9 billion post-money valuation attached to the ICE transaction announced in October 2025.

Rival Kalshi has attracted large amounts of capital during the same period. The company raised $1 billion earlier this year at a $22 billion valuation as trading activity across event contracts expanded into sports, politics and other categories.

Prediction markets allow traders to take positions on whether specified events will occur. Contracts can cover elections and economic decisions as well as sports, entertainment and statements made by public figures.

Trump administration backs federal prediction market oversight

The new Polymarket financing comes while federal and state authorities continue to contest how prediction markets should be regulated in the United States.

President Donald Trump has backed federal oversight through the Commodity Futures Trading Commission and said prediction markets would “thrive” under his administration.

Michael S. Selig, appointed by Trump to lead the CFTC, has supported the industry while the regulator has challenged attempts by states to impose their own restrictions on federally regulated prediction markets.

In May, crypto.news reported that a proposed CFTC rule covering prediction-market event contracts had entered White House review as federal and state officials disputed which authorities should police the sector.

Kalshi and other operators have argued that event contracts offered through CFTC-regulated exchanges fall under the Commodity Exchange Act. Several states have disputed that position and pursued enforcement under their gambling laws.

The disagreement has reached federal courts, where judges have issued differing decisions over whether CFTC jurisdiction prevents states from enforcing gaming laws against prediction market operators.

Trump Jr.’s financial connections to the industry extend to both sides of the main competitive pairing. Along with his investment and advisory role at Polymarket, he serves as a strategic adviser to Kalshi.

Polymarket built a regulated route back into the US

Polymarket’s fundraising has accelerated after the company spent several years working to restore U.S. operations.

The platform stopped serving U.S. users following a 2022 settlement with the CFTC over allegations that it offered unregistered event-based binary options. Polymarket paid a $1.4 million civil penalty and agreed to restrict domestic access.

Its route back into the market began with the $112 million acquisition of QCEX in July 2025. The transaction gave Polymarket control of a CFTC-licensed designated contract market and derivatives clearing organization, providing regulated infrastructure for U.S. operations.

The CFTC later issued a no-action letter covering QCX and QC Clearing, giving Polymarket regulatory relief involving certain reporting and recordkeeping requirements for event contracts.

Polymarket subsequently began rebuilding its domestic business, initially through a separate regulated operation. The company now runs an international blockchain-based venue alongside its regulated U.S. exchange, which operates through the infrastructure acquired from QCEX.

The international platform settles markets using USDC on Polygon, while the U.S. operation requires identity verification and settles in dollars through approved intermediaries.

Competition with Kalshi has intensified as both companies have expanded their event-contract businesses. Polymarket once controlled more than 90% of monthly prediction-market notional volume in November 2024, though its share declined as Kalshi gained ground from September 2025 onward.

1789 Capital, meanwhile, has continued building its investment portfolio as its assets under management climbed above $3 billion. Trump Jr. told the Times that his investment activities were separate from the administration and that he held no government policy role.