Coinbase acquired The Clearing Company, a prediction markets startup, the company said. Coinbase described the business as focused on regulated, on-chain markets.
The acquisition adds a prediction markets company to Coinbase’s offering.
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Bernstein analysts say Kalshi and Polymarket could become acquisition targets as prediction-market companies seek greater control of distribution and infrastructure. The report says both exchanges have infrastructure but lag some rivals in distribution; it also identifies possible consolidation among sportsbook operators.
Coinbase announced on 16 June that it was adding multi-event combinations and interval-based crypto trades to its prediction market offering in the US. The company said customers could trade predictions over intervals from 15 minutes to annual periods, including on Bitcoin, Ether and Solana.
Cantor Fitzgerald analyst Ramsey El-Assal identified Coinbase and Robinhood as publicly traded companies positioned to benefit from prediction markets, according to a report. He said Robinhood describes prediction markets as its fastest-growing business and pointed to potential institutional uses including hedging and risk management.
FanDuel and DraftKings launched prediction-market platforms in the US in December 2025, according to reports. DraftKings Predictions began on 19 December and offers sports event contracts in 38 states; FanDuel Predicts launched on 22 December in a five-state pilot with CME Group. Coinbase filed lawsuits against Connecticut, Michigan and Illinois on 19 December, seeking to establish federal CFTC jurisdiction over prediction markets.
Robinhood highlighted prediction markets and its Cortex AI integration at its “YES/NO” launch event, according to the report. The company estimated that its prediction markets could generate about $300 million in annual recurring revenue by the end of 2025, and its partnership with Kalshi has helped it compete with platforms such as Polymarket. The report also noted ongoing legal challenges facing Kalshi.