Coinbase to acquire The Clearing Company in prediction markets push

Coinbase has agreed to acquire The Clearing Company, an on-chain prediction markets startup focused on digital assets, politics, sports, and culture, as part of its goal to become an "Everything Exchange." The acquisition follows Coinbase's recent entry into prediction markets via a partnership with Kalshi and its announcement of stock trading. The Clearing Company, founded this year and backed by Coinbase Ventures, is led by veterans from platforms like Polymarket and Kalshi. This move signals that event-based markets are integrating with mainstream finance, using crypto infrastructure as a backbone. Coinbase views prediction markets as a significant growth area, citing rising user engagement and potential tax advantages over traditional gambling, especially given proposed tax changes affecting sportsbooks. The Clearing Company had also applied to become a Derivatives Clearing Organization with the US Commodity Futures Trading Commission.

(Source：Cointelegraph)