Coinbase bets on prediction markets with Clearing Company acquisition

Last week, Coinbase began giving users access to prediction markets within its existing trading interface. Now, the company is accelerating that strategy with the acquisition of The Clearing Company, a startup led by founder Toni Gemayel and staffed by what Coinbase calls “prediction market veterans.”

“Today, we’re building on that momentum by acquiring The Clearing Company, a startup with a strong vision for the future of prediction markets,” Max Branzburg, Head of Consumer & Business Products at Coinbase, wrote in a blog post.

Terms of the deal were not disclosed.

Coinbase said Gemayel and his team will help scale prediction markets trading on the platform and advance its broader ambition to build the so-called “Everything Exchange” — a unified venue where users can trade across asset classes, from cash and crypto to equities, derivatives, and event contracts.

Prediction markets allow traders to speculate on outcomes tied to elections, economic data, sports, and cultural events. Coinbase sees the category as a natural extension of its platform, particularly as it seeks to offer regulated access through a familiar trading experience.

The company said combining regulated market infrastructure with event-contract expertise will allow prediction markets to expand over time as part of Coinbase’s broader trading ecosystem.

This is just the latest in a string of deals for Coinbase. Earlier this year it bought Deribit, an options exchange; Vector, a decentralized trading platform; Echo, for onchain capital raising; and the Iron Fish team, for privacy tech.