Coinbase Global, Inc. announced on December 22, 2025 that it will acquire the prediction‑markets startup The Clearing Company. The deal, which is expected to close in January 2026, has not disclosed a purchase price, with reports indicating the transaction is immaterial to Coinbase’s balance sheet.
The acquisition is a key element of Coinbase’s “Everything Exchange” vision, which seeks to transform the platform into a one‑stop shop for a wide range of financial products. By adding prediction markets, Coinbase can offer users the ability to trade on real‑world events alongside cryptocurrencies, derivatives, and equities, thereby diversifying its revenue mix and reducing reliance on volatile crypto‑trading fees.
Coinbase’s recent financials illustrate the strategic fit. In Q3 2025 the company generated $1.9 billion in total revenue, with $747 million from subscription and services and $1.0 billion from transaction fees. The shift toward higher‑margin subscription and services revenue—up from $641 million in Q4 2024—shows a deliberate move to stabilize earnings, a goal that the new prediction‑markets offering supports.
Investors reacted positively to the announcement, reflecting confidence in Coinbase’s diversification strategy and its ability to capture new revenue streams beyond crypto trading.
Coinbase has pursued a series of acquisitions in 2025 to broaden its product portfolio, including a $2.9 billion purchase of Deribit in May and a $375 million deal for Echo in October. The Clearing Company acquisition marks the tenth such transaction for the year.
The company’s regulatory approach to prediction markets is anchored in compliance with U.S. securities laws. Coinbase has partnered with regulated platforms such as Kalshi and has emphasized its commitment to operating within the legal framework, addressing concerns that prediction markets blur the line between betting and financial trading.
In a statement, Coinbase highlighted the expertise of The Clearing Company’s team, noting that the founders bring deep experience in event‑contract design and market operations. The company said the acquisition would accelerate its roadmap toward becoming the “Everything Exchange” by adding a new, regulated product class.
Overall, the deal positions Coinbase to capture growth in the rapidly expanding prediction‑markets sector, strengthen its competitive moat, and reinforce its long‑term strategy of building a diversified, regulated exchange platform.
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