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Polymarket partners with Chainalysis to strengthen on-chain surveillance for prediction markets

  • Polymarket taps Chainalysis to deploy an on-chain monitoring system aimed at enforcing market integrity rules across its prediction platform.
  • The solution will use blockchain data and detection models to identify patterns linked to insider trading, fraud and market manipulation.
  • Chainalysis will provide investigative tools and security infrastructure to support compliance, threat detection and regulatory engagement.

Polymarket announced Thursday that it has partnered with blockchain analytics firm Chainalysis to deploy an on-chain monitoring system to strengthen market integrity across its prediction platform.

The firm will integrate Chainalysis’s data infrastructure and investigative tools to detect and remove insider trading, fraud and other forms of market manipulation. The initiative is designed to enforce Polymarket’s Market Integrity Rules while leveraging the transparency of blockchain-based trading.

Polymarket’s platform operates fully on-chain, with all trades, positions and settlements recorded on a public ledger. That structure, the firm said, enables real-time monitoring and creates an auditable trail to support compliance efforts and regulatory inquiries.

Polymarket to strengthen compliance with Chainalysis tools

The agreement spans multiple Chainalysis product lines, including investigative tools for generating blockchain-based evidence, security capabilities for threat prevention and professional services.

At the core of the system is a detection model built on Chainalysis Data Solutions, designed to flag trading patterns consistent with the use of non-public or insider information.

“This partnership with Chainalysis pairs that transparency with the monitoring and enforcement infrastructure to back it up,” said Shayne Coplan, founder and CEO of Polymarket.

The system is expected to evolve over time, with detection models continuously refined using new data and emerging threat patterns. By combining a transparent market structure with advanced analytics, Polymarket said it aims to establish a benchmark for trust and accountability in on-chain financial markets.

The announcement comes as Polymarket continues efforts to re-establish a regulated presence in the US following its 2022 settlement with the Commodity Futures Trading Commission (CFTC), which led to its exit from the market.

Since then, the company has taken steps to return through compliance-focused initiatives and strategic acquisitions. In 2025, Polymarket acquired QCEX, the parent company of CFTC-licensed derivatives exchange QCX, in a $112 million deal. The acquisition provided access to an existing Designated Contract Market (DCM) license and clearing infrastructure, offering a faster pathway to regulated operations rather than building a new entity from scratch.

Polymarket is reportedly in active discussions with the CFTC to lift restrictions preventing US users from accessing its primary platform. The company is exploring options to integrate its on-chain exchange within the regulatory framework of its US-licensed entity.

Author

Michael Ebiekutan

With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addition to

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Polymarket partners with Chainalysis to strengthen on-chain surveillance for prediction markets