Coinbase (COIN) is taking another major step toward its strategy to become an “Everything Exchange,” with the acquisition of The Clearing Company, a prediction markets startup. The deal comes just one week after Coinbase launched its prediction market product, which allows users to trade on real-world outcomes, including elections, economic data, and sports. Following the news, COIN stock jumped about 3% on Monday.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
COIN to Build Scalable On‑Chain Prediction Markets
The Clearing Company, founded earlier this year by Toni Gemayel, brings together a team with strong prediction‑market experience from Polymarket (PC:POLYM), Kalshi (PC:KALSH), 0x, Dune, and Coinbase. The startup recently raised a $15 million seed round from Coinbase Ventures and other major investors.
The acquired company handles the backend “plumbing” of prediction markets, providing the infrastructure to process trades instead of running a consumer app. This deal will help Coinbase integrate prediction markets directly into its existing trading platform.
By integrating The Clearing Company’s team and expertise, Coinbase aims to speed up the development of these markets. The transaction is expected to close in January 2026.
Prediction Markets Win Regulatory Support
The acquisition comes as prediction markets are gaining popularity, leading to increased regulatory scrutiny and a push for clearer legal frameworks.
Importantly, the Clearing Company recently applied to the U.S. Commodity Futures Trading Commission to become a Derivatives Clearing Organization. This move could help bring event-based markets into the financial mainstream.
Thus, by combining its regulated trading platform with The Clearing Company’s expertise, Coinbase is positioning itself to lead the next wave of event-driven, on-chain financial products.
Coinbase’s vice president of product management, Max Branzburg, said prediction markets are a natural fit for the company’s “Everything Exchange” vision.
“Bringing together regulated market access and deep event-contract expertise sets us up to expand over time, and we’re excited to work with The Clearing Co. team to build this next chapter at Coinbase,” he added.
Is COIN a Good Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on COIN stock based on 17 Buys, eight Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Further, the average Coinbase price target of $385.11 per share implies 52.92% upside potential.
