XO Market launches a user-generated prediction market platform to compete directly with Polymarket and Kalshi. The startup raised funding from 20VC, Picus Capital, and Coinbase Ventures.
The platform lets users create custom prediction markets rather than trade only on existing ones. This peer-to-peer model expands the addressable market beyond sports and politics into niche categories users identify themselves.
XO plans to release a vault product that democratizes market making. Vaults pool capital from multiple users, allowing smaller participants to earn LP fees without running solo liquidity. This addresses a friction point in prediction markets where market depth traditionally requires professional market makers.
Polymarket dominates U.S. prediction market volume, processing hundreds of millions in monthly bets. Kalshi operates with CFTC approval and focuses on regulated event contracts. XO targets the gap between these two by enabling permissionless market creation and lower barriers to liquidity provision.
The Coinbase Ventures backing signals mainstream exchange interest in prediction market infrastructure beyond trading. Success depends on whether user-generated markets attract sufficient volume and whether XO can navigate regulatory scrutiny that has intensified around prediction platforms.