Quick Takeaways
- Coinbase will acquire prediction markets startup The Clearing Company in a deal closing in January.
- The move supports Coinbase’s expansion into regulated, event-based trading products.
- Prediction markets are gaining momentum as crypto platforms diversify beyond spot trading.
Coinbase has agreed to acquire The Clearing Company. The move strengthens its growing prediction markets business. The deal follows Coinbase’s recent rollout of event-based trading. Users can now trade outcomes tied to real-world events.
Coinbase confirmed the transaction will close in January. The exchange did not disclose the deal’s value. The acquisition supports Coinbase’s “everything exchange” vision. That strategy blends crypto, derivatives, equities, and events.
The Clearing Company Joins Coinbase
The Clearing Company launched earlier this year. Toni Gemayel founded the startup. Gemayel previously led growth at Polymarket and Kalshi. Both platforms dominate the prediction markets space.
In August, the startup raised a $15 million seed round. Coinbase Ventures backed that funding round. The company aimed to build a regulated, on-chain platform. Its focus was on compliant prediction market infrastructure.
After the acquisition, most of the team will join Coinbase. The startup employed about ten people. Coinbase said the talent was central to the deal. The transaction includes cash and Coinbase stock.
Scaling Prediction Markets on Coinbase
Coinbase launched prediction markets last week. The rollout occurred through a regulated venue. Liquidity initially came from Kalshi. Coinbase plans to add more partners.
The product allows trading in elections and economics. Sports and other event markets are also included. The Clearing Company’s team will help scale operations. They bring deep experience in event-based trading.
Gemayel said distribution is key to market success. Coinbase provides global reach and infrastructure. By combining teams, Coinbase expects faster expansion. The company wants broader market participation.
Why Prediction Markets Matter Now
Prediction markets have regained momentum. Crypto platforms want higher engagement products. Event-based trading drives frequent user activity. It also attracts non-crypto-native users.
Polymarket and Kalshi saw record volumes last month. Combined trading reached roughly $8 billion in November. Market interest surged around elections and macro events. Retail and institutional users both participated.
Coinbase sees prediction markets as strategic. They complement derivatives and options trading. Regulation has also improved clarity. That enables compliant platforms to scale faster.
Regulatory and Strategic Context
Coinbase emphasized its regulated approach. Compliance remains central to its strategy. Prediction markets face regulatory scrutiny in the U.S. Using licensed venues helps manage that risk.
Coinbase’s product sources liquidity carefully. It avoids operating unregulated markets directly. Max Branzburg, Coinbase’s product lead, highlighted on-chain finance. He said prediction markets fit that shift.
By acquiring The Clearing Company, Coinbase gains expertise. It also accelerates internal product development. The deal reflects confidence in regulatory durability. Coinbase expects long-term demand growth.
Part of a Broader Acquisition Spree
The Clearing Company deal marks Coinbase’s tenth acquisition in 2025. The company has been aggressively expanding. Earlier acquisitions include Deribit and Opyn Markets. Other deals targeted infrastructure and analytics.
Coinbase also acquired Roam, Spindl, and Iron Fish. Each added capabilities beyond spot trading. This strategy aims to diversify revenue. It reduces reliance on transaction fees.
Prediction markets fit that diversification plan. They generate engagement during low-volatility periods. Coinbase continues to build a multi-asset platform. The Clearing Company acquisition supports that goal.
What Comes Next for Coinbase
Coinbase plans to expand prediction markets gradually. More event types are expected. Additional liquidity sources are also planned. Cross-platform support may follow.
The exchange sees strong user interest. Early feedback has been positive. If successful, prediction markets could become core. They may rival derivatives in engagement.
For now, Coinbase is betting on scale. The Clearing Company deal strengthens that bet.