Onyx Odds, a sports betting application, closed a $20 million funding round led by Payward, the parent company of cryptocurrency exchange Kraken, according to The Block. The round signals continued investor appetite for prediction markets and sports betting in crypto, despite existing dominance from established players.
Payward led the round, which also included participation from Jump Crypto, a venture arm of trading firm Jump Trading. The Block did not disclose the valuation or full investor roster. Onyx did not immediately respond to requests for comment on use of proceeds or product roadmap.
The prediction markets space is already crowded. Kalshi and Polymarket command the vast majority of trading volume and liquidity, per market observers, leaving Onyx to differentiate on interface, fee structure, or asset coverage. Kalshi operates under a no-action letter from the CFTC that permits event contracts on U.S. politics and economics. Polymarket, built on Polygon, has captured significant volume on everything from elections to sports outcomes, though it faces ongoing regulatory scrutiny in the U.S. over whether its contracts constitute unregistered derivatives.
Onyx's entry hinges on whether it can carve out a niche among retail users or institutional traders. The $20 million war chest funds product development and likely marketing, though without public disclosure of runway or burn rate, the runway remains opaque. For a betting application competing against incumbents with network effects already in place, execution speed and user acquisition cost will be critical.
Payward's backing suggests confidence in Onyx's team and product thesis, but investment from a major exchange parent does not guarantee market fit or regulatory clarity. The U.S. approach to prediction markets remains fragmented, with different venues pursuing different regulatory paths. Onyx will need to navigate those constraints as it scales.