Coinbase to acquire prediction markets startup The Clearing Company

Coinbase has entered into an agreement to acquire The Clearing Company as the crypto exchange operator deepens its push into event-based trading as part of its broader “everything exchange” strategy.

The deal comes shortly after Coinbase began rolling out prediction markets on its platform last week, allowing users to trade on real-world outcomes such as elections, economic data, and sports within the same interface used for crypto, derivatives, and equities. The transaction is subject to customary closing conditions and is expected to close in January, Coinbase said.

The Clearing Company was founded earlier this year by Toni Gemayel, a former head of growth at both Polymarket and Kalshi. The startup raised a $15 million seed round in August from investors including Coinbase Ventures and set out to build an onchain, regulated prediction markets platform.

Following the acquisition, The Clearing Company’s team will help Coinbase scale its own prediction markets product. The startup employed around 10 people, and nearly the entire team is joining Coinbase as part of the deal, a Coinbase spokesperson told The Block.

The spokesperson declined to disclose the deal value, saying it is “immaterial,” and confirmed that the transaction includes a mix of cash and Coinbase stock.

Gemayel said in a statement to The Block that the acquisition allows the team to take prediction markets to a much broader audience. “Prediction markets work best when strong market structure meets real distribution. Joining Coinbase gives our team the opportunity to take what we’ve learned building event-based markets and apply it at a much larger scale,” he said.

Coinbase began rolling out prediction markets last week through a regulated venue, sourcing liquidity from Kalshi at launch. The company has said it plans to expand the offering over time, including adding support for additional platforms and market types.

“More of the financial system is moving onchain, and prediction markets are part of that shift,” Max Branzburg, Coinbase’s vice president of product management, told The Block in a statement. “By combining The Clearing Co team’s unique experience and talent with Coinbase’s global platform, we can help bring this category to a much wider audience and support builders who want to innovate on top of it.”

The Clearing Company acquisition marks Coinbase’s tenth acquisition announcement in 2025. Earlier deals closed this year include Roam, Spindl, Iron Fish, Deribit, Opyn Markets, Liquifi, Sensible, Echo, and Vector.fun.

Prediction markets have gained renewed momentum as crypto exchanges and fintech platforms look to expand beyond spot trading into higher-engagement products tied to real-world events. Polymarket and Kalshi, the two largest prediction markets, both posted record activity last month, with combined trading volumes reaching about $8 billion in November, according to The Block’s Data Dashboard.