UPDATE 2-NYSE parent nears deal for $2 billion stake in Polymarket, WSJ reports

(Adds background throughout) Oct 7 (Reuters) – Intercontinental Exchange, the parent of New York Stock Exchange, is in talks to invest $2 billion in Polymarket, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The deal could potentially value the world's biggest predictions market between $8 billion and $10 billion, the report said. Reuters had reported earlier this year that the company was close to securing a valuation of more than $1 billion in a funding round led by billionaire Peter Thiel's Founders Fund. A spokesperson for Polymarket did not immediately respond to a Reuters request for comment. Intercontinental, whose shares rose 4.4% in premarket trading following the report, also did not immediately respond to a request for comment. The potential deal, which the WSJ report said could come as soon as Tuesday, would mark a vote of confidence for Polymarket from a major financial institution, as it prepares to re-enter the U.S. market more than three years after restricting American users under a settlement with the Commodity Futures Trading Commission for operating an unregistered derivatives trading platform. Polymarket allows users to profit from predicting outcomes across a wide range of topics, including sports, entertainment, politics and economy. Trading in event-based contracts has surged in popularity since the U.S. presidential election last year. Among the platform's currently trending markets is "when will the government shutdown end?" The company had also secured an undisclosed investment from Donald Trump Jr-backed venture capital firm 1789 Capital in August. (Reporting by Ateev Bhandari in Bengaluru; Editing by Shilpi Majumdar)

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