Coinbase agrees to buy The Clearing Company to deepen prediction markets push

Core Insights - Coinbase is acquiring The Clearing Company to enhance its newly launched prediction market, aiming to become an all-in-one trading platform [1][4] - The prediction market is gaining traction, with weekly notional volume exceeding $4 billion [2] - The acquisition will bring in a team experienced in event-based trading systems, including veterans from Polymarket and a former chief compliance officer at Kalshi [3] Group 1: Acquisition Details - The transaction is expected to close in January, with undisclosed terms [1][2] - The Clearing Company raised $15 million in a seed round led by Union Square Ventures, with participation from Coinbase Ventures [4] Group 2: Market Context - Coinbase has started allowing users to trade on real-world event outcomes, including political elections and sports [2][3] - Competitors like Robinhood, Kraken, and Gemini are also launching equity trading and prediction markets [4] Group 3: Strategic Positioning - Coinbase is positioning itself as the "Everything Exchange" by expanding its platform to include cryptocurrencies, perpetual futures contracts, stocks, and prediction markets [3][4]