Prediction markets infrastructure provider Plaee has partnered with Underdog to help trading platforms and other businesses launch their prediction market services using a ready-made technology stack.
The partnership gives Plaee’s clients access to event contracts and liquidity from Underdog’s CFTC-regulated exchange. Plaee will provide the technology needed to run these services, including a white-label trading interface, exchange connectivity and back-office tools.
Businesses can use the infrastructure to add prediction markets to existing platforms or launch new brands. The companies say the setup can take weeks rather than months, as operators will not need to build the underlying technology and exchange connections themselves.
Underdog’s exchange will be integrated into Plaee’s Prediction Trader interface and PlaeeOS backend. The latter provides tools for managing funding flows, trader retention and monetization.
Underdog operates its prediction markets business through two CFTC-registered entities: Aristotle Exchange DCM/DCO, Inc., which runs the Underdog Exchange as a designated contract market and derivatives clearing organization, and UDM, LLC, which operates as a registered Futures Commission Merchant.
Through this structure, customers can trade federally regulated event contracts covering sports, culture, finance and other topics. Plaee says businesses accessing the exchange through the partnership will not need to register separately as a designated contract market, derivatives clearing organization or futures commission merchant.
Nick Lundgren, chief legal officer at Underdog, said the agreement is intended to accelerate the company’s B2B business by making it easier for operators to launch their own prediction markets.
Plaee co-founder and CEO Leon Okun said the partnership would give operators access to a regulated exchange without requiring them to spend months building the necessary technology and regulatory infrastructure.
The deal follows IG Group’s announcement of its acquisition of Underdog. The move gives the UK-based trading company access to Underdog’s sports platform and customer base as it expands into the U.S. prediction markets sector.
Plaee has also recently partnered with ProphetX and Optimove as it expands its infrastructure offering to businesses entering the prediction markets industry.
