Prediction Marketplace Giant Polymarket Acquires YC-Backed Startup Dome

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4 hours ago

Polymarket Aims to Strengthen Tech Stack With Dome Buy

On Friday, Polymarket confirmed it purchased Dome, a Y Combinator-backed startup focused on unified API infrastructure for prediction markets. Financial terms were not disclosed, but the strategic intent was clear: build faster, smarter rails for developers who want to plug into event-based trading.

Dome, part of Y Combinator’s Fall 2025 cohort, developed a single API and SDK layer that aggregates real-time and historical data from platforms such as Polymarket and Kalshi. Instead of juggling fragmented endpoints, developers can access order books, prices and trade history through one streamlined interface in Typescript or Python.

For Polymarket, that’s not a small tweak. Founded in 2020 by Shayne Coplan, the company operates on the Polygon blockchain and allows users to trade event contracts using USDC across politics, sports, crypto and culture. It handled billions in volume during the 2024 U.S. election cycle, cementing its place as a heavyweight in blockchain-based forecasting.

The company’s path has not been frictionless. In 2022, the Commodity Futures Trading Commission (CFTC) fined Polymarket $1.4 million for operating without proper registration, leading to a U.S. exit. It returned in 2025 during the start of the Trump administration after acquiring QCEX, a CFTC-licensed derivatives exchange, reopening the American market under a compliant structure.

By late 2025, Polymarket carried a valuation near $9 billion following a $2 billion investment from Intercontinental Exchange (ICE), the parent of the New York Stock Exchange (NYSE). It also inked partnerships with Major League Soccer, the National Hockey League (NHL), Substack and Parcl, expanding beyond politics into sports, media and real estate.

Dome brings engineering muscle to that expansion. Co-founders Kurush Dubash and Kunal Roy, both former founding engineers at Alchemy, built Dome to solve a familiar pain point: inconsistent data access across markets. Their infrastructure includes webhook and websocket support for live updates, historical order book snapshots for backtesting and simplified calls that reduce development time.

In short, fewer headaches for builders — and potentially more liquidity for Polymarket. Developer-driven bots, dashboards and trading tools often deepen market activity, which in turn can tighten spreads and improve pricing efficiency. It is a virtuous cycle, at least in theory.

The deal also positions Polymarket to tap into the broader global API market, valued at roughly $269.9 billion. By owning more of its developer stack, Polymarket can shape how third-party apps embed prediction data — whether that’s sports overlays, media integrations or real estate forecasting tools.

Still, integration will not be plug-and-play. Merging APIs across platforms with varying regulatory frameworks is complex. Prediction markets often straddle the line between financial derivatives and betting, inviting scrutiny from regulators at home and abroad.

Even so, the acquisition signals ambition. Rather than simply hosting markets, Polymarket appears intent on becoming the infrastructure backbone for probabilistic forecasting across industries. And with Dome now in-house, the company is betting that better tools will translate into broader adoption.

FAQ ⏰

  • Why did Polymarket acquire Dome?
    Likely to enhance developer infrastructure and unify access to real-time and historical prediction market data.
  • What does Dome’s technology provide?
    A single API and SDK that aggregates order books, prices and trades across multiple prediction platforms.
  • How does this affect Polymarket users?
    Improved developer tools could lead to better apps, tighter markets and expanded product offerings.
  • Are there regulatory risks involved?
    Yes, prediction markets face ongoing oversight in several select U.S. states due to their ties to derivatives trading and betting laws.

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