Coinbase to Acquire Prediction Market Startup The Clearing Co

• Coinbase is acquiring The Clearing Company to integrate prediction markets directly into its multi-asset trading platform.

• The startup brings on-chain prediction market expertise, with founders and staff from Kalshi, Polymarket and Coinbase.

• The deal supports Coinbase’s regulated prediction market rollout as weekly market volumes exceed $4B globally.

Coinbase has agreed to acquire San Francisco-based prediction markets startup The Clearing Company, according to Cointelegraph. The transaction was announced this week and is expected to close in January, though the companies did not disclose financial terms. The acquisition supports Coinbase’s plan to integrate prediction markets directly into its trading platform.

The deal involves The Clearing Company, a startup founded earlier this year by Toni Gemayel, who previously held senior roles at Kalshi and Polymarket. Coinbase said it will bring the startup’s team into its organization following the close. Notably, Coinbase Ventures participated in The Clearing Company’s recent funding round.

Startup Roots and Deal Background

The Clearing Company raised $15 million in a seed round in August led by Union Square Ventures, with backing from Coinbase Ventures and other investors. The startup focuses on on-chain prediction markets covering politics, economics, sports, and cultural events.

Its team includes professionals with experience at Polymarket, 0x, Dune, and Coinbase. According to Coinbase, the acquisition brings specialized experience in building event-based trading infrastructure.

However, the exchange did not disclose whether the deal includes cash, equity, or other consideration. The transaction comes less than a week after Coinbase announced its prediction market launch.

Coinbase’s Prediction Market Rollout

Last week, Coinbase began allowing users to trade prediction contracts through a regulated partnership with Kalshi. These contracts cover outcomes tied to elections, economic data releases, sports, and cultural events. Notably, weekly notional volume across prediction markets has surpassed $4 billion, based on Dune Analytics data.

Coinbase said prediction markets now sit alongside crypto, derivatives, and equities within its platform. The company also plans to expand offerings to include perpetual futures and stock trading. Meanwhile, competitors such as Robinhood, Kraken, and Gemini have launched or announced similar products.

Licensing and Regulatory Developments

In November, The Clearing Company applied to the U.S. Commodity Futures Trading Commission for approval as a Derivatives Clearing Organization. This application aims to allow the firm to operate a licensed clearinghouse for event-based contracts. The filing occurred ahead of Coinbase’s acquisition announcement.

Max Branzburg, Coinbase’s vice president of product management, said prediction markets form part of the company’s broader product strategy. Coinbase added that access to these markets will continue through regulated venues. The company confirmed the transaction remains on track to close in January.