Kalshi and Polymarket Explore Fundraising at $20 Billion Valuations

US President Donald Trump has unveiled a new National Cyber Strategy aimed at enhancing the security of cryptocurrencies and blockchain systems, particularly in light of future threats such as quantum computing.

Key Takeaways

Kalshi and Polymarket are considering fundraising rounds that could value each platform at approximately $20 billion.
These potential valuations represent significant growth from their most recent funding rounds, which valued Kalshi at $11 billion and Polymarket at $9 billion.
The rapid expansion of prediction markets is drawing investor interest, despite increasing regulatory scrutiny.

The strategy, released by the White House on Friday, emphasizes the commitment of the U.S. government to maintain its “unrivaled” status in cyberspace.

The document outlines the importance of secure digital infrastructure and urges Americans to take personal measures to protect their online activities as the government works towards reinforcing cybersecurity on a larger scale.

Kalshi, Polymarket Explore Fundraising at $20 Billion Valuations

Cyber Strategy Prioritizes Crypto and Blockchain Security

Within this new framework, the strategy highlights a specific emphasis on emerging technologies pertinent to the digital asset sector.

The administration plans to “build secure technologies and supply chains that protect user privacy from design to deployment,” while also bolstering the security of cryptocurrencies and blockchain networks.

Additionally, the strategy advocates for the promotion of post-quantum cryptography—encryption systems designed to withstand possible attacks from future quantum computers—as well as the development of secure quantum computing technologies.

The focus on cryptocurrency security arises amid growing discussions within the digital asset industry about whether major blockchain networks are equipped to handle a future where quantum machines could potentially compromise existing encryption protocols.

Although quantum computers are still largely in the experimental phase, experts have warned that powerful quantum machines could eventually pose a threat to cryptographic systems used by Bitcoin and other cryptocurrencies, necessitating a shift to new encryption standards capable of resisting quantum challenges.

While some industry figures believe that the risk is still a long way off, others are taking proactive steps. For instance, Ethereum co-founder Vitalik Buterin suggested a "quantum roadmap" earlier this year to prepare the blockchain for a potential future where quantum computing undermines current cryptographic safety measures.

Trump's Cybersecurity Initiatives and Crypto Policy Reform

The release of Trump's cybersecurity strategy coincides with other policy actions affecting the digital asset landscape. On the same day, he signed an executive order aimed at combating cybercrime, as part of a broader initiative to enhance the nation’s digital defenses.

Since returning to office, Trump has implemented several measures to reshape U.S. crypto policy. Last year, he approved the establishment of a strategic Bitcoin reserve managed by the federal government, which currently includes Bitcoin seized from criminal activities, with no plans to acquire further assets disclosed.

Past executive actions have involved a comprehensive review of digital asset policies and a ban on developing central bank digital currencies, indicating a stance against government-issued digital currencies.

Simultaneously, Trump has applied pressure on Federal Reserve Chair Jerome Powell, even going so far as to suggest criminal investigations. However, the Fed has maintained its steady interest rates, citing robust economic growth and persistent inflation.

Powell has refrained from commenting on the investigation while defending the Fed’s independence, warning that politicizing monetary policy could damage the institution's credibility.

Moreover, Bitcoin has reportedly lost about 25,000 millionaire addresses since Trump's return to the White House, despite a shift in U.S. policy towards a more accommodating approach to crypto. Data indicates that the number of addresses containing at least $1 million worth of Bitcoin has decreased by roughly 16% year over year, suggesting that regulatory optimism hasn't yet materialized into sustained wealth growth in the cryptocurrency space.