Coinbase (COIN) said it agreed to buy The Clearing Company to help grow its newly launched prediction market as part of the crypto exchange’s plan to become an all-in-one platform for trading everything.
The Clearing Company, based in San Francisco, is a startup led by Toni Gemayel, who has worked extensively in the industry, including as head of growth at prediction market Kalshi. Terms of the agreement were not disclosed.
The transaction, which is expected to close in January, comes as prediction markets gain momentum, with weekly nominal volume now exceeding $4 billion according to Dune analytics data. Last week, Coinbase began allowing users to trade the results of real-world events in partnership with Kalshi. Events range from political elections and economic reports to cultural and sporting moments.
Coinbase said the deal will add a team with specialized experience in building and scaling event-based trading systems. It includes veterans of Polymarket, a blockchain-based platform, as well as a former compliance director at Kalshi.
Last week, the exchange said it plans to expand the functionality available on its platform to also include new cryptocurrencies, perpetual futures contracts and stocks, as well as prediction markets.
It is using the initiative to position itself as the “Everything Exchange.” The company’s rivals, including Robinhood, Kraken and Gemini, have already started launching stock trading and prediction markets to their users.
In August, The Clearing Company raised $15 million in a seed round led by Union Square Ventures and including Coinbase Ventures. Last month, it applied for a license to run a clearinghouse from the Commodity Futures Trading Commission (CFTC).
Read more: Prediction markets outperformed Wall Street in forecasting inflation, says Kalshi
