Coinbase Agrees to Acquire The Clearing Company to Expand Prediction Markets Push

Coinbase has agreed to acquire The Clearing Company as it plans to scale prediction markets and advance its ambition of becoming an “Everything Exchange,” according to a blog post published by the exchange.

The deal follows Coinbase’s recent rollout of prediction markets trading for users and shows commitment to regulated onchain event-based markets.

Coinbase Expands Access to Prediction Markets

Last week, Coinbase said it began rolling out access to prediction markets directly on its platform, allowing users to trade on the outcomes of real-world events within the same interface used for crypto, derivatives, and equities trading.

The company said the launch marked an important step in broadening the range of asset classes available to its global user base through a regulated venue and familiar trading experience.

Prediction markets allow participants to express views on events spanning elections, macroeconomic indicators, sports, and culture by trading outcome-based contracts.

Coinbase said it sees strong demand for this category and believes integrating prediction markets alongside existing products could expand user engagement.

The Clearing Co Brings Specialized Expertise

By acquiring The Clearing Company, Coinbase gains a team with deep experience in building and scaling prediction markets. The startup is led by founder Toni Gemayel, whom Coinbase described as a product and growth leader who helped shape the modern prediction markets landscape.

Coinbase said the team’s expertise will also help power and scale prediction markets trading on its platform. The acquisition is intended to speed up product development and execution rather than simply adding technology by adding specialized talent directly into Coinbase’s roadmap for event-based markets.

Prediction Markets Seen as a Growth Area

In the blog post, Coinbase framed prediction markets as a natural extension of its broader strategy to unify multiple asset classes in a single platform.

By combining regulated market access with onchain infrastructure, the company aims to allow millions of users worldwide to participate in prediction markets seamlessly alongside their existing portfolios.

Coinbase stressed that the timing is deliberate, coming as regulatory clarity improves and demand grows for new ways to trade information, risk, and real-world outcomes. The company views prediction markets as complementary to traditional financial instruments rather than a niche product.

Building Toward the “Everything Exchange”

The acquisition of The Clearing Co aligns with Coinbase’s longer-term vision of building the “Everything Exchange,” a unified destination where users can trade across asset classes.

Coinbase said prediction markets fit naturally into this framework, sitting at the intersection of finance, information, and onchain settlement.

By pairing its regulated trading infrastructure with The Clearing Co’s event-contract expertise, Coinbase believes it is well positioned to expand prediction markets over time.

The company explains it is focused on building the next chapter of its platform by bringing together diverse markets under one compliant, scalable, and user-friendly exchange experience.

Prediction Markets Beat Social Media at Finding Truth

Ethereum co-founder Vitalik Buterin has also defended prediction markets against critics who view betting on real-world events as morally questionable, arguing that these platforms offer superior truth-seeking mechanisms to social media while addressing concerns about their potential to incentivize harm.

Writing on Farcaster, Buterin acknowledged prediction markets could theoretically create incentives for harmful actions but dismissed this risk for small-scale markets covering large events.

He noteds that regular stock markets pose similar concerns, pointing out that political actors could profit from disasters simply by shorting stocks with far higher volumes than those on prediction platforms.