Coinbase’s announcement landed the same day reports emerged that FanDuel and CME Group launched a prediction markets
Coinbase has entered an agreement to acquire The Clearing Company, a prediction markets startup, as it accelerates a product expansion that increasingly resembles a multi-asset brokerage model rather than a pure-play crypto exchange.
Announced on December 22, Coinbase said the deal would bring in specialist talent to help “power and scale” prediction markets trading on its platform, following a recent rollout of access to prediction markets for Coinbase users. The company expects the transaction to close in January 2026, subject to customary closing conditions.
The move comes as prediction markets gain traction across US financial and gambling-adjacent sectors, with large consumer brands and market infrastructure players exploring “event contracts” as a new format for retail participation in real-world outcomes such as elections, the economy and sports.
From crypto exchange to “Everything Exchange”
Coinbase’s stated ambition is to become an “Everything Exchange”, positioning prediction markets alongside crypto, derivatives and equities within a single interface. In its announcement, Coinbase framed prediction markets as a natural fit for that vision, arguing that bringing regulated market access together with event-contract expertise will allow it to expand over time.
Reuters characterised the acquisition as part of Coinbase’s broader strategy to diversify beyond crypto trading, including a push into stock trading, as competition intensifies and exchanges seek stickier sources of engagement.
Coinbase did not disclose financial terms, but it has been reported it is Coinbase’s tenth acquisition of 2025, following other deals announced this year.
Why this matters for payments
Prediction markets are less about “new crypto products” and more about what happens when high-frequency, outcome-based trading is made mainstream inside consumer finance apps.
Even where activity sits within a regulated derivatives framework, the user journey still relies on familiar funding rails bringing payments risk, dispute handling, customer due diligence, and affordability/suitability checks back into the centre of the conversation.
Coinbase’s own disclosures states that listed futures and swaps are offered via Coinbase Financial Markets, an NFA member firm registered with the CFTC, while spot accounts are maintained by Coinbase.
For acquirers, card schemes and fraud teams, the key question is how these products are classified operationally. Although prediction markets are structured as trading, critics often argue they resemble gambling – a distinction which can influence merchant categorisation, risk appetite, and the friction applied to funding and payouts.
The regulatory fault line: federal markets vs state gaming rules
Coinbase is also trying to shape the legal perimeter around prediction markets in the US. Multiple reports this month said the company filed lawsuits in Connecticut, Michigan and Illinois seeking confirmation that prediction markets fall under federal oversight via the CFTC, rather than state gaming regulators.
That debate has become more urgent as prediction markets push further into sports-related contracts and expand distribution via consumer brands.
Coinbase’s announcement landed the same day reports emerged that FanDuel and CME Group launched a prediction markets product in five US states, with plans to expand by early 2026; another sign that mainstream consumer and market infrastructure players see event contracts as a high-growth category.
Meanwhile, DraftKings has also formally launched a prediction markets app under CFTC oversight, with analysts flagging ongoing legal uncertainty around whether certain sports-related contracts should be treated as sports betting.
