Onyx Odds, a sports prediction market platform where users trade outcomes on sporting events, has secured $20 million in Series A funding led by Payward, the parent company of crypto firm Kraken. The deal values the company at $220 million, according to a joint statement released Wednesday.
The funding comes less than two years after launch and within a year of exiting beta, signaling rapid early growth for the platform.
Funding to expand trading features and crypto integration
The company said the new capital will be used to enhance its trading functionality and deepen integration with Payward Services, which underpins Payward’s broader financial infrastructure.
Onyx Odds plans to introduce cryptocurrency trading within its app, linking sports-based prediction markets directly with digital asset markets. Payward currently serves more than 15 million users across over 190 countries, providing a global distribution channel for the platform’s expansion.
Rising competition in prediction markets
The prediction market sector is seeing intensified competition and large-scale funding activity. Kalshi recently reached a $22 billion valuation following a $1 billion raise, while Polymarket continues to expand its presence in sports-related contracts.
Technology and financial firms are also moving into the space. Meta has announced its own platform, Arena, initially using a points-based system instead of real-money trading to navigate regulatory constraints while tapping into its massive user base.
At the same time, several U.S.-based crypto platforms are developing similar offerings tied to derivatives and speculative markets.
Surging market activity and trading volumes
The broader market is expanding quickly. Combined monthly trading volume on Kalshi and Polymarket reached დაახლოებით $24 billion in April 2026. A single week ending June 15 recorded $12.2 billion in activity, driven largely by major sporting events.
The ongoing 2026 FIFA World Cup alone generated more than $5 billion in trading volume across platforms. Meanwhile, the total value of unresolved contracts across the sector hit a record $1.48 billion in mid-June, indicating growing capital commitment.
Regulatory pressure and oversight from CFTC
In the United States, prediction markets continue to face legal and regulatory scrutiny, particularly around jurisdiction, compliance, and concerns about insider activity.
Commodity Futures Trading Commission Chair Michael Selig has stated that the agency holds exclusive authority over event-based contracts. He has emphasized plans to establish clearer rules for the sector, shifting toward a structured regulatory framework rather than outright restrictions.
Strategic link to regulated infrastructure
Payward Services plays a central role in the partnership. According to Mark Greenberg, head of Payward Services, the company combines a CFTC-registered futures commission merchant, a designated contract market, and global crypto exchange access within a unified structure.
This setup is expected to give Onyx Odds access to a regulated derivatives infrastructure, allowing the platform to scale more quickly without navigating complex regulatory pathways independently.
With nearly one million users already on the platform, the integration aims to connect sports-based trading with established financial systems, potentially broadening adoption among traders familiar with volatile markets.
Outlook for traders and market development
As the sector evolves, attention is likely to focus on how Onyx Odds structures its markets, particularly in terms of liquidity and contract offerings compared to competitors that processed more than $59 billion in volume in the first quarter of 2026.
Future regulatory guidance from the CFTC will also play a key role in defining what products can be offered and how these platforms operate within U.S. markets.
Explore how evolving rules shape markets like Onyx Odds in this prediction markets regulation guide.
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