Onyx Odds Raises $20 Million in Round Led by Payward
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
prediction-marketsventure-capital
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Sports betting application Onyx Odds secured $20 million in a Series A funding round led by Payward Ventures, the investment arm of Kalshi Hits $1.16B Record">crypto exchange Kraken's parent company. The financing was announced on June 24, 2026, and will be used to accelerate the platform's expansion within the competitive US prediction markets sector. Onyx Odds faces established competitors including Kalshi and Polymarket, which collectively dominate the market for event-driven financial contracts.
Venture capital investment in blockchain-based financial applications has rebounded in the second quarter of 2026 after a prolonged downturn. The total value locked in prediction market smart contracts has grown 40% year-to-date to over $450 million, according to industry data trackers. This resurgence aligns with a broader trend of institutional capital seeking exposure to regulated crypto-adjacent financial technology.
The funding round arrives as regulatory clarity around event contracts improves. A key catalyst was a 2025 Commodity Futures Trading Commission no-action letter that provided a clearer pathway for certain prediction markets to operate legally in the United States. Payward's lead investment indicates a strategic pivot by major crypto-native firms towards synergistic, regulated financial entertainment products. This mirrors a similar move by Coinbase Ventures, which led a $16 million round for a competing platform, Hedgebet, in February 2026.
The $20 million investment is the largest single funding round for a prediction market startup in the past 18 months. It surpasses the $15 million Series A secured by market leader Kalshi in late 2024. Polymarket, operating with a more crypto-centric model, has raised approximately $25 million in total venture funding since its inception.
Prediction Market Platform | Estimated Monthly Volume | Primary Market Focus
--------------------------|--------------------------|---------------------
Kalshi | $80-100 Million | US Regulatory-Licensed
Polymarket | $40-60 Million | Global, Crypto-Native
Onyx Odds | <$10 Million (Est.) | US Sports Betting
The total addressable market for US sports betting is projected to exceed $40 billion in annual handle by 2027. Onyx Odds must capture a fraction of a percentage point of this market to justify its new valuation. For comparison, publicly-traded sportsbook DraftKings reported a market capitalization of $28 billion following its peak user acquisition period.
The capital injection is a net positive for crypto-adjacent fintech sectors, potentially boosting valuations for private companies in the betting and gaming software space. Publicly-listed gambling technology providers like Genius Sports (GENI) and Rush Street Interactive (RSI) may see increased investor interest as capital flows into the category. The deal solidifies Payward's strategy of diversifying beyond pure crypto exchange revenue streams into broader fintech verticals.
A significant risk for Onyx Odds is customer acquisition cost in a saturated market. Dominant players Kalshi and Polymarket benefit from strong network effects, where liquidity attracts more users. Onyx must spend a substantial portion of its new capital on marketing to overcome this inertia, potentially compressing its profit margins for years. Trading flow data suggests institutional speculators are cautiously testing newer prediction markets, but the majority of volume remains concentrated on the two leading platforms.
Market positioning shows a bifurcation: crypto-native funds are accumulating positions on Polymarket, while traditional quantitative funds prefer the CFTC-licensed structure of Kalshi. Onyx Odds aims to capture a middle ground by offering a user-friendly mobile application focused solely on sports outcomes. Its success hinges on converting casual sports bettors into users of its financial contract-based product.
The primary catalyst for Onyx Odds will be its user growth metrics report, expected in Q3 2026. Market participants will scrutinize the platform's monthly active user count and volume-per-user figures. A failure to show exponential growth in these metrics within six months would indicate an unsuccessful market entry.
Key regulatory milestones to monitor include any new CFTC rulings on political event contracts, expected by Q4 2026. A favorable ruling could open a massive new market for all prediction platforms. The performance of gambling sector ETFs like the VanEck Digital Transformation ETF (DAPP) provides a benchmark for investor sentiment toward the broader industry. Watch for DAPP to break above its 200-day moving average, currently at $48.70, as a signal of sustained sector strength.
Prediction markets function as exchanges where users buy and sell contracts based on event outcomes, with settlement prices reflecting crowd-sourced probability. Traditional sports betting involves placing a fixed-odds wager with a bookmaker. The key difference is that prediction market prices fluctuate like a stock based on news and trading activity, allowing users to enter and exit positions before an event concludes. This creates a dynamic, financialized betting experience distinct from a static wager.
Payward Ventures, as the investment arm of Kraken's parent company, is strategically deploying capital into adjacent financial technology verticals to diversify its revenue base. By investing in Onyx Odds, Payward gains exposure to the large and growing US sports betting market without directly operating a regulated gambling platform. This strategy leverages Kraken's expertise in operating a high-volume exchange and its existing user base, which represents a potential onboarding funnel for the Onyx Odds application.
Onyx Odds faces a significant challenge displacing Kalshi and Polymarket, which have first-mover advantages and deep liquidity. Its competitive edge lies in a dedicated focus on mobile-first sports betting, a segment where user experience is paramount. The $20 million war chest provides the necessary resources for an aggressive customer acquisition campaign. Success is not guaranteed and depends on executing a flawless product rollout and capturing a niche segment of sports fans dissatisfied with existing platforms.
Payward's bet on Onyx Odds validates prediction markets as a growth vector for crypto capital.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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