Coinbase to Acquire The Clearing Company for Prediction Markets
Coinbase has entered into a definitive agreement to acquire The Clearing Company, an on-chain prediction markets startup covering digital assets, politics, sports, and culture, as part of its effort to expand beyond cryptocurrency trading and build an “Everything Exchange.” The transaction is expected to close in January. Financial terms were not disclosed.
The Clearing Company was founded earlier this year and previously raised $15 million from investors including Coinbase Ventures, Union Square Ventures, Haun Ventures, and other venture firms and angel investors.
The platform was created by industry veterans from cryptocurrency, prediction markets, and cloud infrastructure. It was founded by Toni Gemayel, who has prior experience at Polymarket and Kalshi. Team members have worked at organizations such as Polymarket, 0x, Dune, and Coinbase.
The announcement follows Coinbase’s recent move to launch prediction markets in partnership with Kalshi as part of its broader “Everything Exchange” strategy. Coinbase also said it plans to introduce stock trading, expanding its offerings beyond digital assets.
The company said the expansion underscores how event-driven markets are increasingly intersecting with regulated finance, with cryptocurrency infrastructure supporting new market formats.
“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 said that markets linked to real-world outcomes are a natural extension of modern financial infrastructure.
Regulatory developments are proceeding in parallel. Last month, The Clearing Company filed an application with the US Commodity Futures Trading Commission to become a Derivatives Clearing Organization, a step that could further align prediction markets with established regulatory frameworks.
Rationale for Coinbase’s move into prediction markets
Coinbase views prediction markets as a long-term growth opportunity. In its latest market outlook report, the company identified prediction markets as a key category to watch through 2026, citing increasing user engagement, evolving regulatory clarity, and broader real-world applications. You can read the whole report here.
The report also referenced a tax provision in US President Donald Trump’s “One Big Beautiful Bill” that would cap the deductibility of gambling losses against winnings at 90%, down from the current 100%. Coinbase warned that the change could lead to taxation on “phantom income,” even where net winnings are small or losses occur.
In this context, Coinbase argued that prediction markets—whose contracts share structural similarities with derivatives—could offer a more tax-efficient alternative to traditional sportsbooks and casinos if treated differently under the tax code.
While the sector remains early-stage, several platforms have established significant market share. Polymarket, a decentralized venue on the Polygon network, enables trading on political, economic, and cultural outcomes via blockchain-based contracts. Kalshi operates as a centralized platform under US regulatory oversight. Separately, DraftKings has entered the prediction markets segment with plans to eventually offer crypto-linked contracts.
Other firms signaling interest include Bitnomial Clearinghouse, a derivatives clearing organization, and cryptocurrency exchange Gemini.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
