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How AI is Transforming Music Creation in Web3
June 20, 2023
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In April 2023, Warner Music Group chief digital officer and executive vice president of business development Oana Ruxandra told CoinDesk’s The Hash that she expects music tools driven by artificial intelligence (AI) to “open up the world like we haven’t before,” inspiring “new forms of creativity and sub-genres” across the music and entertainment industries.

While Ruxandra’s outlook is optimistic, she also acknowledged the concerns of many musicians: “We have to be very vigilant,” she said, noting the importance of protecting the creativity and rights of artists. Just days before Ruxandra’s appearance on The Hash, an AI-generated deep-fake music track titled Heart On My Sleeve gained traction by mimicking the voices of songwriters Drake and the Weeknd – even though neither artist had participated in its creation. Instead, the song’s creators trained the artificial intelligence bot using music by the artists, which angered label owner Universal Music Group over.

Other musicians have been more welcoming to the new technology. Less than a week later, electropop musician Grimes invited her fans to create their own AI-dubbed songs using her voice and extended the offer to split royalties 50/50, demonstrating one creative solution to the AI deep-fake conundrum.

Keeping intellectual property challenges in mind, there’s still no doubt that AI music tools can place new forms of expression at an artist’s fingertips. Sometimes, AI can even be used to enhance music production by filling in technical or intellectual gaps in an artist’s abilities, helping them bring ambitious concepts to life in a matter of clicks. These tools can also perform sound engineering tasks more efficiently, lowering barriers and the time it takes to release music.

As we look toward Web3, companies and artists are taking AI even further by pairing music with immersive, interactive and user-generated experiences in the metaverse and beyond.

AI music tools in Web3

A number of crypto-native musicians and platforms have already found creative ways to integrate AI tools into their practice.

Take VNCCII, for instance, the metaverse-first alter-ego of Sydney-based female producer Samantha Tauber. Utilizing the industry-leading real-time 3D creation tool, Unreal Engine, Tauber dons her avatar to stream live broadcast interviews from the metaverse, in addition to performing in virtual concerts and shows. Like any set or costume change, the digital component of VNCCII’s artistic identity is expanding the borders of her artistry.

Web3 music company PIXELNYX combines augmented reality (AR) experiences with metaverse gaming and is focused on helping artists build memorable experiences for fans. Co-founded by the electronic music producer Deadmau5, who has been known for sending fans on quests through The Sandbox and hosting shows in Decentraland, PIXELYNX aims to evolve our traditional notions of fandom through the use of AI, Web3 and user-generated content (UGC).

In April, PIXELNYX released Korus, a tool that allows users to create AI-powered music companions using officially-licensed artist content.

When used in this spirit, AI music tools can aid, augment or enhance an artist’s creative style. While the tools are not good enough yet to replace artists, they are impressive and constantly “learning” through continued human interaction. Replacing musicians with AI has never been a popular take, as proven by the pushback Spotify received after testing its own version of artificial music curation. Yet despite the controversy surrounding AI, today’s musical artists may be able to benefit from using AI-assisted music production in ways that respect the craft.

Ideation and collaboration

WarpSound, an adaptive AI music platform, has found several ways to integrate blockchain-based collectibles and digital avatars into its business offerings. The company, which produces music content, non-fungible tokens (NFTs) and social experiences, is soon releasing a software API that composes original music note-by-note in a range of styles.

Founder and CEO Chris McGarry, an entrepreneur and media executive who previously severed as the music lead at Facebook’s virtual reality unit Oculus, says WarpSound’s tools help artists find new inspiration and source material that invigorates their creative processes. The company is the recipient of The Sandbox’s Game Maker Fund, which supports game designers in The Sandbox metaverse, and plans to build a home venue inside the platform where artists can experiment with generative music.

WarpSound also worked with Mastercard as the AI music partner for their Artist Accelerator program, where McGarry says he’s observed new benefits to the creative process.

“Last week, I was in a set of virtual studio sessions with artists participating in the program,” said McGarry. “We were working with our generative AI music interface to present a set of musical ideas, then having the artist shape those and iterate until they landed on something, the essence of which resonated with them, that they were motivated to work with.”

WarpSound has also partnered with the Tribeca Film Festival and YouTube to create interactive and playful music experiences between artists and audiences.

Composing and arrangement

If your music project is less about live performance and more about the finished product — maybe you’re composing original music for a podcast, metaverse event, YouTube channel, Web3 video game or educational content — you can use AI to speed up the process of composition and arrangement. Of course, the world’s most talented virtuosos can likely do musical scales in their sleep, but with so many elements to sound and video production, it’s becoming standard practice to use AI to insert quick scales, arpeggios, runs and harmonies to original music.

Tools like Riffusion allow users to provide text prompts that are transformed into music. Soundful is another AI platform that allows people to generate and download royalty-free tracks.

If you want to go one step further and add lyrics, the popular do-it-all tool ChatGPT can write a two-verse song with a pre-chorus, chorus, bridge and outro in just under 30 seconds with minimal prompting. Of course, the lyrics may be a touch simplistic or cheesy — but aren’t some of the best songs?

In most cases, songs generated by AI are reproducible without the need to pay licensing fees, given they were made by machines and therefore not protected under U.S. intellectual property law. Most platforms, however, charge a subscription fee.

These sounds can then be minted as NFTs and sold on marketplaces like OpenSea. Platforms like Royal.io also allow artists to join the site and offer their songs as fractionalized NFTs that offer royalty payouts to fans.

The limits of AI music production

You may have already heard that musical AI tools aren’t yet that sophisticated, especially when compared to the latest AI text-to-image generators (which have already been used to spin out whole comic book collections) and Open AI’s chatbot, Chat GPT (which reportedly passed the Bar exam).

Audio production indeed requires more computing power than static text and image outputs and therefore is lagging behind, according to experts in the field. Alexander Flores, head of tech and strategy at the music research network, Water & Music, says that tech innovation generally travels from the least data-intensive formats to the richest. In the case of AI, it makes sense why chatbots are perhaps faster to develop than AI audio and video rendering.

In one online discussion thread, a Reddit user pointed out these limitations, emphasizing that while a writer can proofread and edit an AI chatbot’s outputs in seconds, it takes several minutes to listen to a song, and sometimes even hours to edit it. Machines are also slower to learn from AI datasets since audio files that feed them rarely have comprehensive text descriptions to teach the AI about the file’s attributes (genre, tempo, key, instrumentation, etc.). Meanwhile, text and image-based AIs can swiftly trawl through thousands of words and visuals.

“How long it takes to consume the content matters a lot,” said Flores. “With a song, you're locked in for three minutes. You can't speed it up because then you're not experiencing the actual song as it was written.”

In addition, images are static, while songs are more dynamic: “Audio is just much higher dimensional,” said Stefan Lattner, managing researcher at Sony CSL, a creative technology lab, in a panel at Water & Music’s inaugural Wavelengths Summit. “While images have a fixed number of pixels, in audio you have a variable number of seconds that you want to generate.”

Nonetheless, Water & Music calls creative AI the most disruptive technology for the music business since Napster, the peer-to-peer file-sharing application that made music distribution virtually free, as well as borderless and permissionless – a concept familiar to crypto-natives.

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👉UNIVERSAL HIGH INCOME (AKA Elon's Soft Landing)

"There is only basically one way to make everyone wealthy, and that is AI and robotics." — Elon Musk

It's called, "Universal High Income"

Elon’s concept of Universal High Income 🚀 (which he often uses instead of "Maximum" or "Basic" income) is a vision of a future where human labor is no longer a requirement for survival.

The combination of advanced AI and mass-produced humanoid robots (like Tesla’s Optimus) will break the traditional link between work and income ⛓️‍💥. Here is the breakdown 👇

🔹 From "Basic" to "High" Income 💎

While traditional Universal Basic Income (UBI) 💵 is often proposed as a government safety net to provide a minimum standard of living, Musk argues that AI will lead to Universal High Income (UHI) ✨

The "High" Part: He believes that in an AI-driven economy, people won't just have "enough to get by"

Instead, they will have access to a luxurious standard of living because goods and services will become incredibly cheap and abundant

Post-Scarcity: He envisions ...

00:00:06
Make The Right Choice.. 😉

Don't follow the sheep into the slaughter house, because of the FALSE illusions.

00:00:06
🇺🇸 SEC Chair Paul Atkins says crypto market structure legislation is about to pass in Congress.

⏳️

00:00:24
👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading

🚨 Russia clears digital ruble for government usage starting January 2026 🚨

Russia’s retail CBDC launch has been postponed to September 2026, but federal government departments will be authorized to use the digital ruble for public-sector payments beginning 1 January 2026, according to a Ministry of Finance directive published last week. The move marks the first live deployment of Russia’s CBDC, albeit in a limited government-only pilot, and introduces programmable features that can restrict how recipients spend funds.

🔑Key points

🔹 Retail delay: Consumer launch pushed back from 1 July 2025 to 1 September 2026; no public explanation, but industry sources cite wallet-security audit gaps.

🔹 Government start date: Federal agencies can issue digital-ruble payments starting 1 Jan 2026 for social security, salaries, and capital expenditure; Ministry of Finance finalising eligible payment types by 31 Dec 2025.

🔹 Opt-in mechanism: Recipients (citizens, contractors, civil servants) choose digital ruble ...

🚨 Hong Kong finalizes Basel crypto rules for banks; capital charges kick in 1 Jul 2025 🚨

Hong Kong Monetary Authority (HKMA) published the final “Basel III standardized approach for crypto-asset exposures” on 20 Dec 2024, adopting the global Basel Committee framework with local modifications that enhance disclosure and tighten stablecoin reserve haircuts. The rules—subject to a three-month industry comment period—will be gazetted in March and become mandatory for all locally incorporated banks on 1 July 2025.

🔑Key points

🔹 Scope of application: All authorized institutions (AIs) with crypto-asset exposures must classify holdings into Group 1 (tokenized traditional assets) or Group 2 (unbacked crypto); Group 2a (BTC, ETH only) and Group 2b (all others) capital charges differ.

🔹 Capital add-ons: Group 2a attracts 1250 % risk-weight (full deduction from CET1) for unhedged positions; Group 2b is flatly prohibited unless held in custody-only mode.

🔹 Stablecoin carve-out: Asset-referenced tokens ...

🚨 Bitcoin ETFs shed $825m in five days; U.S. becomes net seller of BTC for first time since launch 🚨

Spot Bitcoin ETFs saw cumulative outflows of $825.3 million between 16 and 20 December 2024, the worst five-day stretch since the products went live in January, according to CoinTelegraph analysis of Bloomberg and Farside data. BlackRock’s IBIT, Fidelity’s FBTC and ARKB all posted single-day redemptions above $100m, flipping the U.S. from the world’s largest BTC accumulator to a net seller for the first time.

🔑Key points

🔹 Flow breakdown: IBIT -$312m, FBTC -$284m, ARKB -$129m, BITB -$68m; GBTC (now BTCO) actually saw modest inflow +$18m as discount arbitrageurs returned.

🔹 Five-day tally: Total AUM dropped from $108.3 bn to $107.5 bn; 12,150 BTC exited custody, reducing net ETF holdings to 1,034,680 BTC.

🔹 Seller profile: Retail dominated outflows (85 % of trades < $50k), while institutional wallets tracked by Arkham remained flat, suggesting year-end profit-taking and tax-loss harvesting ...

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Stellar CEO Reveals Where Real Opportunity Lies in Crypto Market: Details

In a recent tweet, Stellar Development Foundation (SDF) CEO and Executive Director Denelle Dixon defines what "real opportunity" is in blockchain as a new financial future beckons.

The SDF CEO was reacting to a recent Bloomberg report on Bank of New York Mellon Corp (BNY), Nasdaq, S&P Global and iCapital participation in a new $50 million investment round by Digital Asset Holdings. This comes as some of Wall Street’s biggest names embrace the technology that underpins cryptocurrencies to handle traditional assets.

Reacting to this development, Stellar Foundation CEO Denelle Dixon stated that every blockchain investment is a bet on a different financial future. Dixon added that seeing banks explore blockchain technology validates what has been known over the years.

Real opportunity defined

While Wall Street’s biggest names betting on blockchain might be one of the most significant adoption milestones in the digital asset market, Dixon defines what real opportunity is and what it is not.

According to the SDF executive director, real opportunity is not replicating old systems on new rails but rather building open networks that fundamentally expand global finance participation.

"But the real opportunity isn’t replicating old systems on new rails—it’s building open networks that fundamentally expand who gets to participate in global finance. That’s the opportunity," Dixon tweeted.

At the Meridian 2025 event, Stellar outlined its long-term privacy strategy, committing to investing in critical privacy infrastructure and building foundational cryptographic capabilities.

Stellar eyes privacy upgrade

A new protocol upgrade is on the horizon for the Stellar network: X-Ray, which lays the groundwork for developers to build privacy applications on Stellar using zero-knowledge (ZK) cryptography.

The protocol timeline testnet vote is anticipated for Jan. 7, 2026, while the mainnet vote is expected for Jan. 22, 2026.

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XDC Network's acquisition of Contour Network

XDC Network's acquisition of Contour Network marks a silent shift to connect the digital trade infrastructure to real-time, tokenized settlement rails.

In a world where cross-border payments still take days and trap trillions in idle liquidity, integrating Contour’s trade workflows with XDC Network Blockchains' ISO 20022 financial messaging standard to bridge TradFi and Web3 in Trade Finance.

The Current State of Cross-Border Trade Settlements

Cross-border payments remain one of the most inefficient parts of global finance. For decades, companies have inter-dependency with banks and their correspondent banks across the world, forcing them to maintain trillions of dollars in pre-funded nostro and vostro balances — the capital that sits idle while transactions crawl across borders.

Traditional settlement is slow, often 1–5 days, and often with ~2-3% in FX and conversion fees. For every hour a corporation can’t access its own cash increases the cost of financing, tightens liquidity that could be used for other purposes, which in turn slows economic activity.

Before SWIFT, payments were fully manual. Intermediary banks maintained ledgers, and reconciliation across multiple institutions limited speed and volume.

SWIFT reshaped global payments by introducing a secure, standardized messaging infrastructure through ISO 20022 - which quickly became the language of money for 11,000+ institutions in 200 countries.

But SWIFT only fixed the messaging — not the movement. Actual value still moves through slow, capital-intensive correspondent chains.

Regulated and Compliant Stablecoin such as USDC (Circle) solves the part SWIFT never could: instant, on-chain settlement.

Stablecoin Settlement revamping Trade and Tokenization

Stablecoin such as USDC is a digital token pegged to the US Dollar, still the most widely used currency for trade, enabling the movement of funds instantly 24*7 globally - transparently, instantly, and without the need for any intermediaries and the need to lock in trillions of dollars of idle cash.

Tokenized settlement replaces multi-day reconciliation with on-chain finality, reducing:

  • Dependency on intermediaries
  • Operational friction
  • Trillions locked in idle liquidity

For corporates trapped in long working capital cycles, this is transformative.

Digital dollars like USDC make the process simple:

Fiat → Stablecoin → On-Chain Transfer → Fiat

This hybrid model is already widely used across remittances, payouts, and treasury flows.

But one critical piece of global commerce is still lagging:

👉 Trade finance.

The Missing link is still Trade Finance Infrastructure.

While payments innovation has raced ahead, trade finance infrastructure hasn’t kept up. Document flows, letters of credit, and supply-chain financing remain siloed, paper-heavy, and operationally outdated.

This is exactly where the next breakthrough will happen - and why the recent XDC Network acquisition of Contour is a silent revolution.

It transforms to a new era of trade-driven liquidity through an end-to-end digital trade from shipping docs to payment confirmation – one infrastructure that powers all.

The breakthrough won’t come from payments alone — it will come from connecting trade finance to real-time settlement rails.

The XDC + Contour Shift: A Silent Revolution

  • Contour already connects global banks and corporates through digital LCs and digitized trade workflows.
  • XDC Blockchain brings a settlement layer built for speed, tokenization, and institutional-grade interoperability and ISO 20022 messaging compatibility

Contour’s digital letter of credit workflows will be integrated with XDC’s blockchain network to streamline trade documentation and settlement.

Together, they form the first end-to-end digital trade finance network linking:

Documentation → Validation → Settlement all under a single infrastructure.

XDC Ventures (XVC.TECH) is launching a Stable-Coin Lab to work with financial institutions on regulated stablecoin pilots for trade to deepen institutional trade-finance integration through launch of pilots with banks and corporates for regulated stable-coin issuance and settlement.

The Bottom Line

Payments alone won’t transform Global Trade Finance — Trade finance + Tokenized Settlement will.

This is the shift happening underway XDC Network's acquisition of Contour is the quiet catalyst.

Learn how trade finance is being revolutionised:

https://www.reuters.com/press-releases/xdc-ventures-acquires-contour-network-launches-stablecoin-lab-trade-finance-2025-10-22/

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Inside The Deal That Made Polymarket’s Founder One Of The Youngest Billionaires On Earth🌍

One year ago, the FBI raided Polymarket founder Shayne Coplan’s apartment. Now, the college dropout is a billionaire at age 27.

In July, Jeffrey Sprecher, the 70-year-old billionaire CEO of Intercontinental Exchange, the parent company of the New York Stock Exchange, sat at Manhatta, an upscale restaurant in the financial district overlooking the sprawling New York City skyline from the 60th floor. As a sommelier weaved through tables pouring wine, in walked Shayne Coplan—in a T-shirt and jeans, clutching a plastic water bottle and a paper bag with a bagel he’d picked up en route. Sprecher chuckles as he recalls his first impression of the boyish, eccentric entrepreneur: “An old bald guy that works at the New York Stock Exchange, where we require that you wear a suit and tie, next to a mop-headed guy in a T-shirt that's 27.” But Sprecher was fascinated by Polymarket, Coplan’s blockchain-based prediction market, and after dinner, he made his move: “I asked Shayne if he would consider selling us his company.”

Prediction markets like Polymarket let thousands of ordinary people bet on future events—the unemployment rate, say, or when BitCoin will hit an all-time high. In aggregate, prediction market bets have proven to be something of a crystal ball with the wisdom of the crowd often proving itself more prescient than expert opinion. For instance, Polymarket punters predicted that Trump would prevail in the 2024 presidential election, when many national pundits were sure that Kamala Harris would win.

Coplan initially turned down Sprecher’s buyout offer. But discussions led to negotiations and eventually a deal. In October, Intercontinental announced it had invested $2 billion for an up to 25% stake in the company, bringing the young solo founder the balance he was looking for. “We're consumer, we’re viral, we're culture. They’re finance, they’re headless and they’re infrastructure,” Coplan tells Forbes in a recent interview.

At the same time, Coplan announced investments from other billionaires including Figma’s Dylan Field, Zynga’s Mark Pincus, Uber’s Travis Kalanick and hedge fund manager Glenn Dubin. A longtime Red Hot Chili Peppers fan, Coplan even convinced lead singer Anthony Kiedis to invest after a mutual acquaintance brought the musician to Coplan’s apartment one day. “He's buzzing my door, and I’m like, ‘holy shit,'” Coplan recalls, his bright blue eyes widening. “I love their music. A lot of the inspiration [for my work] comes from the music that I listen to.”

Thanks to the deals, Polymarket’s valuation quickly shot to $9 billion, making the 2025 Under 30 alum the world’s youngest self-made billionaire, with an estimated 11% stake worth $1 billion. His reign was short: twenty days later, he was overtaken as the youngest by the three 22-year-old founders of AI startup Mercor.

Young entrepreneurs are minting ten-figure fortunes faster than ever. In addition to the Mercor trio and Coplan, 15 other Under 30 alumni—including ScaleAI cofounder Lucy Guo, Reddit’s Steve Huffman and Cursor’s cofounders—became billionaires this year, while Guo’s cofounder Alexandr Wang and Robinhood’s Vlad Tenev (both former Under 30 honorees) regained their billionaire status after having fallen out of the ranks.

The budding billionaire has long been fascinated by markets and tech. When he was just 14, Coplan emailed the regional Securities and Exchange Commission office to ask how to create new marketplaces. “I did not get a response, but it’s a really funny email,” he says, grinning playfully as he thinks of his younger self. “It just shows that this stuff takes over a decade of percolating in your mind.”

Two years later, Coplan showed up at the offices of internet startup Genius uninvited after multiple emails of his asking for an internship went ignored. At age 16—at least a decade younger than anyone in that office—he secured his first job after making a memorable impression with his “wild curls” and “encyclopedic knowledge of billionaire tech entrepreneurs.” “If he chooses to become a tech entrepreneur, which seems likely, I have no doubt that we’ll be seeing his name again in the press before long,” Chris Glazek, his manager at the time, wrote in Coplan’s college recommendation letter.

Coplan went on to study computer science at NYU, but dropped out in 2017 to work on various crypto projects that never took off. In 2020, he founded Polymarket to create a solution to the “rampant misinformation” he saw in the world: The company’s first market allowed users to bet on when New York City would reopen amid the pandemic. He soon expanded into elections and pop culture happenings, among other events.

But it didn’t take long for the company to butt heads with regulators. In January 2022, Polymarket paid a $1.4 million fine to the Commodity Futures Trading Commission for offering unregistered markets. It was also ordered to block all U.S. users, but activity on Polymarket skyrocketed particularly during the 2024 U.S. presidential election, with bets totaling $3.6 billion. A week after the election, the FBI raided Coplan's apartment and seized his devices as part of an investigation into a possible violation of this agreement. Shortly after, Coplan posted on his X account that he saw the raid as “a last-ditch effort” from the Biden administration “to go after companies they deem to be associated with political opponents.”

In July, the Department of Justice and CFTC dropped the investigations—after which Sprecher reached out to Coplan for dinner—and less than a week later, Polymarket announced it had acquired CFTC-licensed derivatives exchange QCX to prepare for a compliant U.S. launch. QCX applied to be a federally-registered exchange in 2022—an application that was left dormant for three years before receiving approval less than two weeks before the acquisition was announced. When asked about the timing of the deal, Coplan points to CFTC acting chairwoman Caroline Pham, who President Trump tapped to lead the agency in January. “Caroline deserves a lot of credit for getting every single license that had been paused for no reason approved, as acting chairwoman in less than a year,” he says. Coplan had realized an acquisition might be the only way for Polymarket to legally operate in the U.S. as early as 2021 due to the lengthy federal approval process, a source familiar with the deal told Forbes.

Just two months after the acquisition and days after Donald Trump Jr. joined Polymarket’s advisory board, the company received federal approval to launch in the U.S. (Trump Jr. has also served as a strategic advisor to Polymarket’s main competitor Kalshi since January.)

Polymarket’s rapid rise has drawn critics. Dennis Kelleher, co-founder and CEO of Washington-based financial advocacy group Better Markets, told Forbes in an email that the current administration’s deregulation around prediction markets has unlocked a regulatory “loophole” to enable “unregulated gambling” under the CFTC, “which has zero expertise, capacity or resources to regulate and police these markets.” Kelleher added that with backing from the Trump family “who are directly trying to profit on this new gambling den… the massive deregulation and crypto hysteria will almost certainly end badly for the American people.”

Investors and businesses are scrambling to seize the moment of deregulation. “We had opportunities to invest in events markets earlier, but there was a lot of risk,” Sprecher says, listing the regulatory changes in favor of crypto and prediction markets under the current administration. “This was the moment to invest if we wanted to still be early in the space.”

In the last few months, Trump’s Truth Social and sportsbook FanDuel, as well as cryptocurrency exchanges Crypto.com, Coinbase and Gemini all announced their own plans to offer prediction markets. Robinhood CEO Vlad Tenev said prediction markets, which were integrated into its platform in March, were helping drive record activity for the retail brokerage in its third quarter earnings call.

“People are starting to realize right now that the opportunities are endless,” says Dubin, the billionaire hedge fund veteran who invested in Polymarket earlier this year. He points to sports betting companies, which have been regulated by states as gambling activity and taxed accordingly. States like New York can tax up to 51% of sportsbooks’ revenue, but federally-regulated prediction markets can bypass state laws, avoiding taxes and operating in all 50 states. With the realization that prediction markets could upend the sports betting industry—which brought in $13.7 billion in revenue in 2024—businesses are quickly jumping on board despite pushback from state gambling regulators. In October, both Polymarket and Kalshi secured partnerships with sportsbook PrizePicks and the National Hockey League, and Polymarket announced exclusive partnerships with sportsbook DraftKings and the Ultimate Fighting Championship.

The disruption won’t be limited to sports betting. Alongside its investment, Intercontinental’s tens of thousands of institutional clients including large hedge funds and over 750 third-party providers of data will soon have access to Polymarket data, as it gets integrated into Intercontinental’s products such as indices to better inform investment decisions. It also hopes to work with Polymarket to work on initiatives around tokenization—or converting financial assets into digital tokens on blockchain technology—to allow traders on Intercontinental’s exchanges to trade more flexibly at all hours of the day, Sprecher says. What’s more, in November, Google Finance announced it would integrate Polymarket and Kalshi data into its search results, while Yahoo Finance also announced an exclusive partnership with Polymarket.

Despite flashy investors, partnerships and a record $2.4 billion of trading volume in November, Polymarket has yet to launch in the U.S. or turn a profit. Coplan and his investors have hinted at ways the company could make money one day—selling its data, charging fees to users, launching a cryptocurrency token (similar to Ethereum or Bitcoin)—but decline to confirm any specifics. For now, the only thing that’s certain is the bet Coplan is making on himself. “Going for it and having it not pan out is an infinitely better outcome than living your life as a what if,” he says.

Standing across from the New York Stock Exchange building, Coplan tilts his head up as he watches a massive banner with Polymarket’s logo get hoisted onto the exterior of the building. It’s been five years since founding. One year since the FBI raid. He’s taking it all in. “Against all odds,” the bright blue banner reads, rippling in the wind alongside three American flags protruding from the building.

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