‘Financial Super App’ Coinbase Acquires Prediction Market ‘The Clearing’ [Crypto Briefing]

[Financial News] Global cryptocurrency exchange Coinbase is set to expand its event-based trading business by acquiring the prediction market startup The Clearing Company. This acquisition comes right after Coinbase officially launched its own prediction market service on its platform. Through this move, Coinbase aims to accelerate its transformation into a ‘financial super app’ that integrates cryptocurrencies, stocks, derivatives, and prediction markets.
According to the digital asset industry on the 23rd, most of The Clearing Company’s key personnel will join Coinbase once the acquisition is finalized in January next year. They will work to enhance the prediction market features within the Coinbase platform and lead service expansion.
To secure initial service liquidity, Coinbase chose to source liquidity from Kalshi, a prediction market platform regulated by the Commodity Futures Trading Commission (CFTC). This strategy is designed to absorb the surging demand for prediction markets, particularly following recent U.S. presidential elections, while minimizing regulatory uncertainty.
Hong Jin-hyun, a researcher at Samsung Securities Co., Ltd., stated, “Major players such as Coinbase and Robinhood Markets Inc. have recently launched a ‘Prediction Market Alliance’ to collectively advocate for prediction markets to be recognized as financial information markets rather than gambling.”
Previously, Coinbase also announced its ‘Everything Exchange’ vision through a recent system update. The plan includes: supporting commission-free stock trading 24 hours a day, five days a week; building prediction markets based on elections, sports, and economic indicators; and expanding to over 30 perpetual futures contracts in the U.S. The strategy is to move beyond a revenue structure centered on cryptocurrency spot trading fees and diversify into stocks, derivatives, and prediction markets.
Especially as the cryptocurrency market remains range-bound, prediction markets are emerging as a key product category that can increase trading frequency and user engagement. Kim Yu-min, a researcher at Hanwha Investment & Securities Co., Ltd., explained, “As trading volumes in prediction markets surge, the overall market size continues to grow. Even amid the recent downturn in the cryptocurrency market, prediction market platform volumes are rising, making them an effective way to diversify revenue.”
As a result, there are growing expectations that Coinbase will intensify competition with mobile-based brokerages such as Robinhood Markets Inc. Analysts note that Coinbase is breaking down the boundaries between blockchain-based (on-chain) assets and traditional financial assets by introducing features such as stock purchases using USD Coin (USDC) (Circle).
Ahn Young-jun, a researcher at KIWOOM Securities Co., Ltd., remarked, “Starting early next year, Coinbase will offer Perpetual Stock Futures Trading 24/7 outside the U.S. and launch a Real-World Asset Tokenization (RWA) platform for institutional clients. This could warrant a valuation premium given the high growth potential of these new businesses.”
elikim@fnnews.com Kim Mi-hee Reporter