Coinbase agrees to acquire The Clearing Company to expand its prediction markets offering

Coinbase is buying The Clearing Company, a startup that focuses on prediction markets, as the crypto exchange looks to expand its range of regulated on-chain products tied to real-world events.

The deal comes shortly after Coinbase rolled out Prediction Markets to its users, allowing them to trade on outcomes like elections, economic data, sports, and even cultural moments, all from the same platform they already use for crypto, derivatives, and stocks. Coinbase says the acquisition will help build on this launch and evolve prediction markets as part of what it calls its vision of an “Everything Exchange.”

Coinbase Acquires The Clearing Company as It Joins Prediction Markets Competition

In its press release, Coinbase said the deal aims to “fuel the future of prediction markets,” highlighting how important it is to bring event-based contracts onto the same platform as more traditional financial products. The company noted that The Clearing Company brings hands-on experience in creating and managing prediction markets, which Coinbase believes will help it grow this category in a regulated setup.

We first announced the prediction markets on Coinbase.

We are now tapping specialist talent to take our projects to the next level.

Welcome to Coinbase, @theclearingco. pic.twitter.com/KfRZSp9w9j

— Coinbase (@coinbase) December 22, 2025

The Clearing Company is led by founder Toni Gemayel, who Coinbase describes as a product and growth leader with extensive industry experience. According to Coinbase, Gemayel and his team will help “scale world-class prediction markets on Coinbase” and advance the company’s broader platform goals.

Prediction markets allow people to trade contracts based on the probability of future events. Coinbase said it sees a big opportunity to bring these markets to millions of users around the world, integrating them directly into wallets already containing cash, cryptocurrencies, stocks and derivatives.

Looking forward to sharing this @theclearingco joined @coinbase! We set out to transform the way people interact with prediction makers, and now we’re taking it to the next level. More soon to come https://t.co/GG7yVM8Ifz

-Nina Qi (@theninaqi) December 22, 2025

More broadly, Coinbase presented the acquisition as another step toward bringing together multiple asset classes in one place. However, the deal must still be subject to standard closing conditions and is expected to be finalized in January. Coinbase also highlighted that listed futures and swaps are offered through Coinbase Financial Markets, which is registered with the United States Commodity Futures Trading Commission, while spot accounts are held separately by Coinbase, Inc.

The company’s CEO, Brian Armstrong, may have accidentally highlighted real concerns about prediction markets after coming up with a list of buzzwords that were allegedly chosen based on what users of prediction market platforms Kalshi and Polymarket had bet would appear during the call.

Even though it was a joke, the moment highlighted how easy it could be for individuals to influence the outcome of what was, in this case, an $84,000 betting market.

Featured Image: Coinbase Press Release

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