The partnership between Chainalysis and Polymarket aims to stop insider trading in prediction markets via data analytics and investigations.
Chainalysis has partnered with Polymarket to launch a suite of on-chain solutions that monitor trading activity and prevent insider trading.
Transactions on Polymarket function on-chain, which makes them transparent and traceable by design. Hence, Chainalysis’s solutions will include investigative tools to produce blockchain-verified evidence, on-chain security capabilities, and train Polymarket’s team to manage the solutions.
Additionally, the suite will include a detection model built on Chainalysis Data Solutions, which is designed to detect patterns consistent with insider knowledge in prediction markets.
The unique set of solutions is a clear signal regarding Polymarket’s view on insider trading, and the detection system will also continuously refine its detection methods for insider trading based on the latest patterns and intelligence.
Shayne Coplan, Founder and CEO of Polymarket, said: “Polymarket was built on-chain because transparency matters, and our platform shows what markets can look like when trades are open, traceable, and accountable by design. This partnership with Chainalysis pairs that transparency with the monitoring and enforcement infrastructure to back it up, and helps us continue to build the most trusted source of truth in markets.”
Jonathan Levin, Co-Founder and CEO, Chainalysis, said: “On Polymarket, all trades and all settlements are recorded on a blockchain — a level of transparency that traditional markets simply cannot match. Pairing that transparency with Chainalysis’ data and expertise sets a new standard for market integrity enforcement.”
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