Polymarket Partners With Chainalysis for On-Chain Trade Surveillance

Polymarket, the world's largest prediction market platform, said on May 4 that it had chosen blockchain data platform Chainalysis as a partner and would deploy an on-chain solution to monitor trading activity across its decentralized finance platform and enforce market-integrity rules.

Polymarket operates fully on-chain, with all trades, positions and settlements recorded on a public blockchain. The company said the platform was built for traceability from the outset, giving it a foundation to set integrity standards beyond prediction markets and across broader financial markets.

The agreement includes Chainalysis investigative tools and on-chain security features. The tools can be used to generate blockchain-based evidence in cooperation with regulators or law enforcement agencies, while also helping prevent threats before they emerge. The package also includes professional services for implementation, internal training, development of new detection capabilities and support for complex investigations.

At the core of the rollout is a detection model built on Chainalysis data solutions. The model is designed to identify patterns suggesting the use of insider information in prediction markets. It expands Polymarket's existing multilayered monitoring system and is intended to more precisely detect potential violations of the platform's terms of service.

Polymarket said the system could help identify insider trading, fraud and attempted market manipulation. It added that blockchain-based markets can improve transparency by using on-chain data to detect threats in advance and report them to regulators.

The solution was built for ongoing upgrades. Polymarket said it plans to strengthen insider-trading detection by incorporating the latest patterns through Chainalysis data and analytics, while maintaining an oversight framework that can respond to new threats.

"Polymarket was built on transparency, and every trade was designed to be traceable," founder and Chief Executive Officer Shayne Coplan said. "Through our partnership with Chainalysis, we will strengthen our monitoring and enforcement infrastructure and develop into a trusted source of market information."

"Polymarket has a highly transparent structure in which every trade and settlement is recorded on the blockchain," Chainalysis co-founder and CEO Jonathan Levin said. By combining the company's data and expertise, he said, the partnership aims to set a standard for enforcing market integrity. He added that on-chain markets have the potential to become credible indicators of global developments.