Major U.S. cryptocurrency exchange Coinbase announced on December 22 that it has reached an agreement to acquire The Clearing Company, a startup focused on regulated prediction markets. The deal marks Coinbase’s 10th acquisition in 2025, underscoring its aggressive expansion strategy beyond traditional crypto trading.
? Coinbase bolsters prediction market strategy@Coinbase strengthened its position in prediction markets through the acquisition of The Clearing Company.
? Full Article:https://t.co/PJODssPbWp
— Crypto Economy News (@CryptoEconomyEN) December 23, 2025
The Clearing Company previously raised $15 million in a seed funding round led by Coinbase Ventures. The acquisition is expected to close in January 2026, pending regulatory approvals. Upon completion, The Clearing Company’s team will join Coinbase and work on expanding prediction market products across the platform.
Strategic Expansion Into Prediction Markets
Coinbase has increasingly positioned itself as an “Everything Exchange,” aiming to support trading across a wide range of asset classes beyond cryptocurrencies. The acquisition aligns with this vision by adding infrastructure for prediction markets, which allow users to trade contracts based on the outcomes of real-world events such as elections, economic data releases, and policy decisions.
Prediction markets are gaining attention as a practical application of blockchain-based financial infrastructure, offering price signals that reflect collective expectations. The Clearing Company specializes in building compliant infrastructure for regulated prediction markets, an area Coinbase sees as strategically important.
Coinbase CEO Brian Armstrong has emphasized that prediction markets offer value beyond speculation, describing them as powerful tools for aggregating information and understanding market expectations.
Regulatory Challenges and Market Impact
Despite their potential, prediction markets face regulatory hurdles in the United States. The Clearing Company is currently involved in legal disputes in three states related to state-level gambling regulations. Coinbase has stated that it aims to work under the oversight of the U.S. Commodity Futures Trading Commission (CFTC) to establish a clear, unified federal regulatory framework for prediction markets.
Following news of the acquisition, Coinbase shares rose approximately 3% in morning trading, signaling positive market sentiment toward the company’s strategic expansion.
However, some analysts, including those at Mizuho Securities, have expressed concerns about potential cannibalization of Coinbase’s core, highly profitable crypto trading business. They warn that users may shift existing assets into prediction markets rather than bringing in new capital.
$COIN wants to be the "Everything Exchange." Mizuho sees a classic case of self-cannibalization.
→ The Pitch: Transform with commission-free stocks, prediction markets, custom stablecoins & deep $SOL connectivity. A page from the $HOOD playbook.
→ The Problem: The jury is out…
— V.C.F. (@VcircleFuture) December 19, 2025
Competition is also expected to intensify, with established platforms such as Kalshi and Polymarket already operating in the prediction market space.
By leveraging its strong position in crypto markets and expanding into prediction-based products, Coinbase aims to further cement its role as a bridge between traditional finance and digital asset markets, while opening new avenues for long-term growth.
