Prediction market platform Polymarket has acquired crypto payments and DeFi infrastructure startup Brahma, according to a report by Fortune. The deal, for which the financial terms were not disclosed, is aimed at improving user experience and boosting liquidity, particularly for smaller, niche markets on the Polymarket platform.
The acquisition will see Brahma's engineering team and core technology integrated into Polymarket's ecosystem. Brahma, founded in 2021, has processed over $1 billion in transactions through its smart account system, which is designed to simplify complex crypto operations like wallet creation, deposits, and token conversions. These have been identified as key friction points for users entering crypto-based prediction markets.
Brahma co-founder Alessandro Tenconi highlighted that the platform could reduce complexity in "creating a wallet, depositing and converting shares, and redeeming outcome tokens," areas where user drop-off has historically been high. Polymarket expects the integration to streamline onboarding and transaction flows, which should directly impact trading activity and user retention.
A central goal of the acquisition is to address the uneven distribution of liquidity on Polymarket. While major event contracts attract deep capital, smaller or niche contracts often remain thinly traded, leading to issues like slippage. By leveraging Brahma's DeFi automation tools—which enable advanced features like limit orders—Polymarket aims to direct more capital into these underdeveloped markets, making a broader range of contracts viable.
The move is part of a broader growth strategy for Polymarket, which is reportedly seeking to raise additional funding at a $20 billion valuation. The company is also expanding its compliance efforts, working with Palantir Technologies and TWG AI on a real-time surveillance system for its regulated US trading venue. Furthermore, Polymarket is establishing a physical venue in Washington, D.C., called The Situation Room, to connect online trading with real-world engagement.
Brahma will sunset its standalone products within 30 days, with all development efforts redirected to the Polymarket ecosystem. This acquisition follows Polymarket's previous purchases of Dome and QCEX, as it builds a unified, full-stack platform for prediction markets and financial tools.
