Coinbase said on Monday it has agreed to acquire prediction markets startup The Clearing Company, marking another step in the exchange’s strategy to expand beyond its core cryptocurrency trading business.
Prediction markets allow users to trade contracts linked to the outcomes of real-world events, including elections, economic indicators, sporting events, and policy decisions. These platforms effectively turn expectations and forecasts into financial instruments that can be bought and sold.
Advocates argue that market-driven pricing can capture collective expectations more accurately than traditional polls or analyst forecasts. Critics, however, say prediction markets blur the boundary between investing and gambling, an issue that has increasingly drawn regulatory attention.
The acquisition follows Coinbase’s recent launch of its own prediction markets platform. The company also said it plans to allow users to trade stocks, positioning itself as a direct competitor to online brokerages such as Robinhood and Interactive Brokers.
Prediction markets gained widespread attention during the 2024 U.S. presidential election between Donald Trump and Kamala Harris. Since then, the sector has attracted growing interest from established financial institutions and emerging fintech firms looking to gain exposure to the rapidly expanding space.
At the same time, trading platforms are increasingly offering multiple asset classes under one roof as competition for retail trading activity intensifies. Analysts say this diversification could help Coinbase reduce its reliance on crypto trading volumes as more rivals enter the market.
The deal for The Clearing Company is expected to close in January and represents Coinbase’s tenth acquisition in 2025. Financial terms of the transaction were not disclosed.
Earlier this year, Coinbase agreed to acquire derivatives exchange Deribit for $2.9 billion, followed by a roughly $375 million cash-and-stock deal in October for investment platform Echo.
Coinbase shares were last up about 3% in morning trading, tracking gains across U.S.-listed crypto stocks, which moved higher alongside rising Bitcoin prices.
