In a strategic expansion of its product offerings, leading cryptocurrency exchange Coinbase has announced a definitive agreement to acquire The Clearing Company, an on-chain prediction markets startup. The deal, first reported by The Block and confirmed to Cointelegraph, is expected to close in January 2026, marking a significant move by Coinbase to diversify beyond traditional crypto trading.
The acquisition represents a rapid ascent for The Clearing Company, which was founded earlier in 2025 and had already secured $15 million in funding from investors including Coinbase Ventures, Union Square Ventures, and Haun Ventures. The startup's team, led by founder Toni Gemayel, brings expertise from platforms like Polymarket and Kalshi, as well as companies including 0x and Dune.
"The Everything Exchange is a unified platform to trade crypto, equities, and everything else people want to trade," said Max Branzburg, Coinbase’s vice president of product management. "Prediction markets are an important part of that platform." A Coinbase spokesperson added that these markets are a "natural extension of modern financial infrastructure."
This move follows closely on Coinbase's recent announcement of a partnership with Kalshi and its plans to offer stock trading, solidifying its "Everything Exchange" strategy. The company views prediction markets—which allow users to bet on outcomes in politics, sports, culture, and digital assets—as a major growth opportunity, citing rising user engagement and potential regulatory clarity.
However, the integration faces significant hurdles, primarily navigating a complex global regulatory landscape where prediction markets can intersect with gambling laws. The Clearing Company has already taken steps toward mainstream integration by applying to become a Derivatives Clearing Organization (DCO) with the U.S. Commodity Futures Trading Commission (CFTC).
Coinbase's latest market outlook report highlights the sector's potential, noting that a proposed tax provision in U.S. legislation could make prediction markets a more tax-efficient alternative to traditional sports betting. The acquisition signals a broader industry trend of crypto platforms evolving into multifaceted financial hubs, potentially accelerating innovation and adoption in the prediction market niche.
