Coinbase Acquires The Clearing Company, Expands Prediction Markets Strategy
Coinbase is acquiring The Clearing Company, an on-chain prediction markets startup, to support its strategy of becoming an “Everything Exchange” that offers crypto, equities, and diverse investment products. The Clearing Company, founded in 2023 by industry veterans, enables users to bet on outcomes across digital assets, politics, sports, and culture. This move follows Coinbase’s announcement of launching prediction markets, expanding beyond crypto into stocks and event-based trading. The acquisition signals growing mainstream acceptance of event-driven markets and further integration of crypto infrastructure into traditional finance. The Clearing Company has applied to become a Derivatives Clearing Organization with the CFTC, positioning itself within regulated finance. Coinbase sees prediction markets as a growth opportunity, citing rising user engagement and possible tax advantages compared to traditional gambling, especially if new regulations impact sportsbook taxation. The sector is currently led by platforms like Polymarket and Kalshi, with entrants such as DraftKings and Bitnomial also pursuing similar opportunities. Coinbase aims to leverage this trend, positioning prediction markets as a key part of modern financial infrastructure.
