Coinbase to acquire The Clearing Company in prediction markets push

cointelegraphОпубліковано о 2025-12-22Востаннє оновлено о 2025-12-22

Анотація

Coinbase has agreed to acquire The Clearing Company, an on-chain prediction markets startup, as part of its strategy to become an "Everything Exchange." The acquisition, expected to close in January, will expand Coinbase’s offerings beyond digital assets to include prediction markets spanning politics, sports, and culture. The Clearing Company, founded earlier this year and backed by Coinbase Ventures, recently applied to become a Derivatives Clearing Organization with the CFTC. Coinbase views prediction markets as a major growth opportunity, citing regulatory developments and potential tax advantages over traditional gambling. The move aligns with broader industry interest in event-based markets, with players like Polymarket and Kalshi also active in the space.

Coinbase has agreed to acquire The Clearing Company, an on-chain prediction markets startup that spans digital assets, politics, sports, and culture, as it expands its push to become an “Everything Exchange” offering a broad range of investment products.

In an announcement shared with Cointelegraph, Coinbase said it has entered into a definitive agreement to acquire The Clearing Company, with the transaction expected to close in January. Financial terms of the deal were not disclosed.

The acquisition marks a rapid turnaround for The Clearing Company, which was founded earlier this year and counted Coinbase Ventures among its investors in a $15 million funding round alongside Union Square Ventures, Haun Ventures and several other venture firms and angel investors.

The Clearing Company is an on-chain prediction markets platform built by veterans of the cryptocurrency, prediction markets, and cloud infrastructure sectors. It was founded by Toni Gemayel, who previously worked with prediction market platforms Polymarket and Kalshi. Its broader team brings experience from companies including Polymarket, 0x, Dune and Coinbase.

Coinbase unveiled the acquisition less than a week after announcing its entry into prediction markets as part of its broader “Everything Exchange” strategy in partnership with Kalshi.

At the same time, Coinbase stated it will begin offering stock trading, further broadening its product lineup beyond digital assets.

Taken together, the acquisition highlights how event-based markets are moving closer to the regulated financial mainstream, with cryptocurrency infrastructure increasingly serving as the backbone for emerging market types.

“The Everything Exchange is a unified platform to trade crypto, equities, and everything else people want to trade,” Max Branzburg, Coinbase’s vice president of product management, told Cointelegraph. “Prediction markets are an important part of that platform.”

A Coinbase spokesperson added that markets tied to real-world outcomes represent “a natural extension of modern financial infrastructure.”

This momentum is unfolding alongside a shifting regulatory landscape. Last month, The Clearing Company applied with the US Commodity Futures Trading Commission to become a Derivatives Clearing Organization, in a step that could further integrate prediction markets into established financial frameworks.

Related: Coinbase borrows Kalshi’s playbook, sues three states over prediction markets

Why Coinbase is betting on prediction markets

Coinbase’s push into prediction markets comes as the company increasingly views the sector as a major growth opportunity rather than a niche product.

In its latest market outlook report, which was covered by Cointelegraph, Coinbase identified prediction markets as one of the most important categories to watch through 2026, citing rising user engagement, regulatory clarity, and expanding real-world use cases.

In the report, Coinbase pointed to a tax provision in President Donald Trump’s “One Big Beautiful Bill,” which would limit the deductibility of gambling losses against winnings to 90%, down from the current 100%.

While the change may appear modest, Coinbase warned it could result in taxpayers being taxed on so-called “phantom income,” even in cases where net winnings are minimal or losses are incurred.

In this environment, Coinbase argued that prediction markets, which rely on contracts structurally similar to derivatives, could emerge as a more tax-efficient alternative to traditional sportsbooks and casinos, particularly if they are treated differently under the tax code.

*Prediction market activity has surged since the 2024 US presidential election. Source:* *Coinbase*

While prediction markets remain a relatively nascent industry, the space is already dominated by a handful of major players. Chief among them is Polymarket, a decentralized platform built on the Polygon network that allows users to trade on political, economic, and cultural outcomes using blockchain-based contracts.

Kalshi has also emerged as a leading centralized player, operating under US regulatory oversight. Meanwhile, publicly traded sports betting company DraftKings has entered the prediction markets space, with plans to eventually offer crypto-linked contracts.

DraftKings would join a growing list of companies signaling interest in the sector, including Bitnomial Clearinghouse, a derivatives clearing organization, and crypto exchange Gemini.

Related: Polymarket shows stronger retention than most DeFi, wallets and exchanges

Пов'язані питання

QWhat is the main reason for Coinbase's acquisition of The Clearing Company?

ACoinbase is acquiring The Clearing Company to expand its push into prediction markets as part of its broader strategy to become an 'Everything Exchange' offering a wide range of investment products.

QWhen is the acquisition of The Clearing Company by Coinbase expected to be finalized?

AThe transaction is expected to close in January, though the specific financial terms of the deal were not disclosed.

QWhat regulatory step did The Clearing Company take recently to integrate prediction markets into established financial frameworks?

AThe Clearing Company applied with the US Commodity Futures Trading Commission (CFTC) to become a Derivatives Clearing Organization.

QAccording to Coinbase, why could prediction markets emerge as a more tax-efficient alternative to traditional sports betting?

ACoinbase argues that prediction markets, which use contracts similar to derivatives, could be more tax-efficient if treated differently under the tax code, especially in light of a proposed provision that would tax 'phantom income' from gambling even with minimal net winnings or losses.

QName two major existing players in the prediction markets space mentioned in the article.

ATwo major players mentioned are Polymarket, a decentralized platform on Polygon, and Kalshi, a centralized platform operating under US regulatory oversight.

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