Key Moments:
- The Clearing Company has raised $15 million in seed funding to build a regulated, on-chain prediction market platform.
- This initiative is led by Union Square Ventures, with additional participation from Coinbase Ventures and other investment firms.
- Donald Trump Jr. has joined Polymarket’s advisory board after 1789 Capital invested in the company.
Capital Injection and Investment Partners
The Clearing Company, established by former executives from Polymarket and Kalshi, has attracted $15 million in seed capital for the development of its on-chain prediction market. The funding round was spearheaded by Union Square Ventures, with Coinbase Ventures, Compound, Rubik, Earl Grey, Cursor Capital, Asylum, and several others joining as investors.
By entering a market that is currently under close regulatory examination, the founders aim to deliver a solution that serves both retail users and regulatory authorities, while also positioning the company to compete with Polymarket and Kalshi.
Designing a New User Experience
The Clearing Company intends to move away from intricate financial architectures in favor of a platform that is both permissionless and regulated, designed to foster transparency and accessibility in event-based betting. Their approach is informed by the historic development of prediction markets, citing examples from papal succession wagers in ancient Rome to political betting on Wall Street before World War II.
Prediction markets, according to the firm, act as a dynamic type of news, offering forecasts that can outperform traditional reporting. By compelling market participants to risk their own capital on their insights, these platforms aim to provide a more accurate depiction of collective expectations.
The platform being envisioned looks to simplify user experiences, enabling easier engagement for a broader audience. As described in their press release: “The next era of prediction markets will be shaped by the collective creativity of the internet. Their power won’t come from complex financial mechanics and clunky user interfaces, but from simplicity and imagination.”
Prediction markets have always felt like one of crypto sleeping giants.
The idea is simple trade on real-world outcomes, and let financial incentives surface truth better than biased polls or noisy headlines.
But the problem has always been scale and regulation.
Most… pic.twitter.com/MQagqTtf6Y
— RayRay (@rayray_1_) August 28, 2025
Spotlight on Regulation and Political Figures
Prediction markets function by allowing users to buy and sell contracts based on possible future outcomes. However, the close link between these markets, gambling, and finance has led to significant attention from regulators across various states in the US.
The sector has received additional focus due to the involvement of high-profile individuals. Donald Trump Jr. has joined the advisory board of Polymarket, a move that followed an investment in the company by 1789 Capital, a venture capital firm co-led by Trump Jr. 1789 Capital is recognized for supporting startups aligned with conservative principles. The investment, announced on August 26, did not disclose financial details.
Trump Jr. highlighted Polymarket’s importance for transparency, noting its ability to let users wager on real-world outcomes, independent of media narratives and expert opinions. He also communicated his intention to further expand access to prediction markets nationwide. His latest role comes after previously serving as an advisor to rival platform Kalshi, reflecting a growing involvement in the sector.
Polymarket CEO Shayne Coplan commented, “This strategic investment marks a significant milestone for Polymarket. Our long-term partnership with 1789 Capital will help reinforce Polymarket’s leading position as a trusted source of free, transparent and accurate market information in the US and around the world.”
Major Investors in The Clearing Company’s Seed Round
| Investor | Role |
|---|---|
| Union Square Ventures | Lead Investor |
| Coinbase Ventures | Investor |
| Compound | Investor |
| Rubik | Investor |
| Earl Grey | Investor |
| Cursor Capital | Investor |
| Asylum | Investor |
- Author
Daniel Williams
