Onyx Odds, a prediction markets app focused on sports outcomes, has closed a $20 million Series A funding round led by Payward, the parent company of cryptocurrency exchange Kraken. The investment values the company at $220 million, less than two years after launch and under a year after exiting beta. The announcement, made on Wednesday, marks a significant capital injection as prediction markets continue to draw attention from crypto exchanges, venture investors, and major tech platforms.
As part of the deal, Onyx Odds will integrate with Payward Services, the B2B infrastructure platform that underpins Kraken and Payward’s wider product suite. Additionally, crypto trading capabilities will be built directly into the Onyx app, enabling users to exchange digital assets alongside sports event contracts. Kraken claims over 15 million users across more than 190 countries, providing a substantial potential user base and regulatory infrastructure.
The prediction market sector is already fiercely competitive. Established players Kalshi and Polymarket have secured strong brand recognition and liquidity, with Kalshi recently reaching a $22 billion valuation after a $1 billion raise. Coinbase and Gemini have also launched their own prediction market offerings, while Meta has signaled plans to enter the space. Onyx Odds will need to differentiate through sports-specific product design, pricing, and the regulatory positioning provided by its connection to Payward.
Regulatory uncertainty remains a key challenge. The Commodity Futures Trading Commission (CFTC), under Chair Michael Selig, argues for exclusive federal jurisdiction over prediction markets, while state-level authorities continue to question whether sports-linked contracts constitute gambling. “We are the only U.S. platform that brings a CFTC-registered FCM, a CFTC-designated DCM and a global crypto exchange under one roof,” said Mark Greenberg, head of Payward Services, emphasizing the combined regulatory and trading infrastructure now available to Onyx Odds.
Investor appetite persists despite these headwinds. The round signals that prediction markets are increasingly seen as a strategic extension of crypto exchange ecosystems, blending trading engagement with real-world events. For Onyx Odds, the fresh capital and Payward partnership offer a pathway to compete, but the next phase will hinge on building liquidity and navigating a complex regulatory landscape.
