Coinbase doubles down on prediction markets with deal for The Clearing Company

Dec 22 (Reuters) - Coinbase (COIN) said connected Monday it volition bargain prediction markets startup The Clearing Company, arsenic the crypto speech looks to ​expand beyond its halfway integer assets business.

Prediction markets fto users ‌buy and merchantability contracts tied to the outcomes of real-world events, ranging from elections and economical ‌data to sports and argumentation decisions, efficaciously turning investors' forecasts into tradable markets.

Supporters accidental the prices tin bespeak corporate expectations much accurately than polls oregon forecasts, portion critics reason the products blur the enactment betwixt fiscal markets and betting, ⁠drawing increasing scrutiny from ‌regulators.

Last week, Coinbase launched its prediction markets level and said it volition commencement letting users commercialized stocks, positioning it arsenic ‍a nonstop rival to brokerages specified arsenic Robinhood and Interactive Brokers.

Prediction markets surged into the mainstream during the 2024 U.S. statesmanlike contention betwixt Donald Trump and Kamala Harris, ​and person since drawn accelerated involvement and investments from accepted fiscal ‌heavyweights and newer fintech players alike, who are seeking vulnerability to the fast-growing space.

Meanwhile, trading platforms are broadening their merchandise suites to encompass aggregate plus classes nether 1 extortion arsenic contention for retail trading measurement intensifies. This shift, analysts say, could assistance Coinbase trim its reliance connected crypto trading arsenic caller ⁠players assemblage the market.

The woody for The ​Clearing Company, which is expected to adjacent ​in January, marks Coinbase's tenth acquisition successful 2025. It did not disclose the presumption of the transaction.

Among its notable deals this ‍year, Coinbase agreed ⁠in May to bargain derivatives speech Deribit for $2.9 billion, and followed successful October with a astir $375 cardinal cash-and-stock woody for concern level Echo.

Its ⁠shares were past up 3% successful greeting trading, successful enactment with gains crossed U.S.-listed crypto ‌stocks, which roseate successful tandem with bitcoin prices.

(Reporting by Manya Saini ‌in Bengaluru; Editing by Shinjini Ganguli)