Rich by Coin

Coinbase, a cryptocurrency exchange, announced plans to acquire the predictive markets startup The Clearing Company to expand beyond its core digital asset business into prediction markets. The deal would be Coinbase’s tenth acquisition this year, with closing expected in January next year, while terms were not disclosed. Predictive markets are platforms where contracts tied to the outcomes of real-world events—such as elections, economic indicators, sports results, and policy decisions—are bought and sold, turning investors’ forecasts into tradable instruments.

Proponents say the prices more accurately reflect collective expectations than traditional polls. Critics warn the line between finance and gambling could blur, drawing closer regulatory scrutiny. Predictive markets began drawing attention after the 2024 US presidential election and have since drawn rapid interest and investment across the broader financial ecosystem.

At the same time, trading platforms are expanding to offer multiple asset classes on a single platform amid growing competition. Coinbase has launched its own predictive market platform earlier this month and signaled it will allow stock trading in the future, signaling direct competition with traditional brokerages such as Robinhood and Interactive Brokers. Analysts at JPMorgan described Coinbase’s new moves as potentially boosting customer participation.

Coinbase had previously agreed in May to acquire Deribit, a derivatives exchange, for about $2.9 billion, and in October signed a deal to acquire investment platform Echo for about $375 million. The stock closed up 1.13% at $247.90.