Intercontinental Exchange Inc. (NYSE:ICE) invested $600 million in cash into Polymarket, completing a funding plan that gives the New York Stock Exchange owner a roughly $1.6 billion stake in the world’s largest prediction market.

Intercontinental Exchange initially invested $1 billion in October, with a commitment to ramp up to as much as $2 billion over time. The company also expects to purchase up to $40 million in Polymarket securities from existing holders.

• Intercontinental Exchange stock is showing downward bias. What’s next for ICE stock?

Prediction Market Funding Boom

The investment lands amid a flood of institutional capital into the sector. Rival Kalshi raised more than $1 billion earlier this month at a $22 billion valuation, roughly double its previous mark. Polymarket’s valuation for ...