MoonPay Acquires Dawn Labs, Launches AI Tool in Prediction Markets Push

Financial technology company MoonPay announced the launch of an AI technology tool for trading strategies on prediction markets following its acquisition of Dawn Labs for an undisclosed amount.

MoonPay said Monday that it had launched Dawn CLI in an effort to facilitate trading strategies “in plain English,” citing activity on prediction market platforms like Polymarket and Kalshi. Dawn Labs founder Neeraj Prasad said the tool will democratize trading “by general intelligence.”

“Prediction markets are one of the fastest-growing categories, attracting a new generation of active traders across platforms like Polymarket and Kalshi,” MoonPay said in its announcement. “These traders use signals from social media, automated strategies and cross-platform positioning, but the infrastructure required for high performance remains fragmented, manual and technically demanding.”

Source: MoonPay

The move closer to prediction markets comes as Kalshi and Polymarket face several state-level lawsuits over allegations that the companies are illegally facilitating sports betting and other activities not permitted by state law. Until December 2025, Caroline Pham, MoonPay’s chief legal officer, was a commissioner and acting chair at the US Commodity Futures Trading Commission (CFTC), which has since claimed exclusive jurisdiction over prediction markets.

Related: MoonPay releases open-source wallet standard for AI agents

Trading on prediction markets continues to be under scrutiny by many US lawmakers and industry leaders given the platform’s models often allowing insider trading. In April, a soldier was charged with using classified information about the US military operation to capture former Venezuelan President Nicolás Maduro to make more than $400,000 through event contracts on Polymarket.

Kalshi increases valuation to $22 billion

MoonPay’s acquisition followed prediction markets platform Kalshi closing a $1 billion funding round last week, resulting in the company reaching a valuation of about $22 billion. The move effectively doubled Kalshi’s valuation in five months.

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