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

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

The deal comes shortly after Coinbase rolled out prediction markets to its users, letting them place trades 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 that launch and scale prediction markets as part of what it calls its vision for an “Everything Exchange.”

Coinbase acquires The Clearing Company as it joins prediction markets competition

In its press release, Coinbase said the deal is all about “powering the future of prediction markets,” pointing out 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 building and running prediction markets, which Coinbase believes will help it grow this category within a regulated setup.

First we announced prediction markets on Coinbase.

Now we’re bringing in the specialized talent to take our plans to the next level.

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

— Coinbase