Kraken Parent Payward Leads $20M Investment in Prediction Market Startup Onyx Odds

Investment in prediction market startups continues to accelerate as investors look beyond cryptocurrency exchanges and toward platforms that combine financial trading with real-world events. The latest example is Onyx Odds, which has secured $20 million in Series A financing at a $220 million valuation.

The round was led by Payward, the parent company of crypto exchange Kraken, marking one of its most visible strategic investments in the consumer prediction market sector. The financing comes less than two years after Onyx launched and follows an earlier $8.3 million seed round announced in 2025.

Unlike many recent crypto funding announcements focused on blockchain infrastructure or enterprise software, Onyx operates a consumer-facing platform where users predict sports outcomes through a sweepstakes-based model. The structure allows the company to operate across more than 30 U.S. states without functioning as a traditional sportsbook, although the regulatory treatment of prediction markets continues to evolve.

We’ve closed our Series A funding round valuing Onyx at $220M, led by @krakenfx parent @Payward

This investment will help bring exciting new products to our users. pic.twitter.com/amT1pErruh

— Onyx (@OnyxOdds) June 24, 2026

Onyx announced the funding on June 24, saying it had raised $20 million in a Series A round at a $220 million valuation led by Payward, Kraken’s parent company. The company said the new capital will support the rollout of new products and its continued expansion in the prediction market sector.

Funding signals investor confidence beyond crypto exchanges

The investment reflects a broader shift among crypto companies seeking exposure to prediction markets rather than relying solely on digital asset trading. Instead of building another standalone exchange, Payward is backing a platform that could eventually combine sports prediction contracts, regulated event markets, cryptocurrency trading and derivatives within a single application. The approach mirrors a wider industry trend in which exchanges increasingly view prediction markets as an adjacent financial product capable of attracting new retail users.

Industry observers note that infrastructure has become a competitive advantage. Rather than developing its own exchange technology, Onyx intends to rely on Payward’s regulated trading infrastructure, allowing the startup to focus on consumer products while outsourcing much of the underlying trading stack.

Company seeks to expand beyond sports predictions

Founded in New York, Onyx has grown from a sports-focused prediction platform into a company pursuing a broader financial trading model. According to previously disclosed plans, the company is preparing to introduce additional products that include:

• Regulated event contracts
• Cryptocurrency trading
• Perpetual futures
• Expanded prediction markets beyond sports

The company has also stated that it reached profitability within a relatively short period after beginning operations, trading volume or profitability metrics. Last year, Onyx entered a partnership with Polymarket, giving it access to prediction market infrastructure while expanding the range of contracts available to users. That agreement illustrated a growing trend of collaboration rather than direct competition among platforms serving different segments of the prediction market ecosystem.

Competition is becoming increasingly crowded

The Series A arrives as venture capital continues flowing into prediction market businesses despite unresolved regulatory questions in the United States. Kalshi remains the dominant regulated operator after reportedly reaching a $22 billion valuation following a recent $1 billion fundraising round. Polymarket has expanded internationally, while major crypto exchanges including Coinbase, Gemini and Kraken have all introduced prediction-related products as they diversify beyond traditional cryptocurrency trading.

The opportunity has attracted attention because prediction markets generate trading activity tied to elections, economic data, sports and other real-world events, creating revenue streams that are less dependent on cryptocurrency price cycles.

Regulatory uncertainty, however, remains a significant challenge. Federal regulators continue debating the extent of the Commodity Futures Trading Commission’s authority over event contracts, while several states maintain that sports-related prediction markets resemble gambling products subject to local oversight. The outcome of those disputes is expected to influence how companies such as Onyx expand regulated offerings in coming years.

For venture investors, the latest funding round suggests that regulatory complexity has not diminished interest in the sector. Investor confidence has also been strengthened by Kalshi $2 billion revenue, highlighting the growing commercial potential of prediction markets and event-based trading platforms. Instead, capital is increasingly flowing toward platforms capable of combining licensed trading infrastructure with consumer-facing financial applications, a strategy that could reshape competition across both crypto trading and prediction markets.