ProphetX raises $35 million after CFTC approval

ProphetX has raised $35 million to expand its federally regulated sports prediction market, strengthen liquidity and scale its business-to-business platform. The company said the funding followed its nationwide launch after approval from the U.S. Commodity Futures Trading Commission.

The round was led by Parlay Capital and Data Point Capital. Other investors included FDJ Ventures, Greenwave Ventures, Connexa Capital, Impellent Ventures, The Operating Group, Sharp Alpha Advisors, and proprietary trading firms including Chicago Trading Company Ventures and Belvedere Trading.

In June, the CFTC approved ProphetX’s applications to register as both a designated contract market and a derivatives clearing organization. That dual registration allows the company to trade, clear and settle event-based contracts under CFTC oversight.

ProphetX said it was operating the nation’s first federally regulated sports-focused prediction market after that approval. The company also said its regulatory journey began in the United Kingdom in 2018, when it was licensed as a peer-to-peer marketplace for sports event trading.

The platform is structured as a peer-to-peer exchange. Users trade directly with one another, set their own prices and pay transaction commissions, rather than wagering against a bookmaker.

ProphetX also pointed to its Request for Quote Parlay Mechanism, which lets participants build and negotiate pricing for combinations of multiple event contracts. The company said the system mirrors institutional trading protocols and is designed to offer flexibility, transparency and competitive pricing.

The company said active users and assets on the platform rose by about 50% in its first month operating as a regulated prediction market, after the FIFA World Cup. It planned to use the new capital to enhance the trading platform, expand strategic partnerships and scale infrastructure for institutional clients.

Chief executive and co-founder Dean Sisun said the financing would help the company meet growing demand from consumers and institutions after regulatory approval and nationwide rollout. ProphetX expects trading volume to triple in 2026 as it expands institutional participation, grows B2B partnerships and broadens the range of contracts available for trading.