Coinbase announced the acquisition of prediction markets startup The Clearing Company to expand beyond digital assets. Prediction markets allow users to trade contracts on real-world events. Critics warn of the blurring line between financial markets and betting. Coinbase recently launched its prediction markets platform, competing with brokerages like Robinhood.

The surge of prediction markets during the 2024 U.S. presidential race drew interest from traditional financial players. Trading platforms are expanding to include multiple asset classes to compete for retail trading volume. Coinbase’s acquisition of The Clearing Company is its tenth in 2025. Previous acquisitions include Deribit for $2.9 billion and Echo for $375 million.

Coinbase’s shares rose 3% in morning trading, reflecting gains in U.S.-listed crypto stocks following bitcoin price increases. The deal with The Clearing Company is set to close in January. Coinbase aims to reduce reliance on crypto trading by broadening its product offerings. The company did not disclose the terms of the acquisition.

Read more at Yahoo Finance: Coinbase doubles down on prediction markets with deal for The Clearing Company