According to Bloomberg Business, Coinbase Global Inc. announced on Monday that it’s acquiring a derivatives clearinghouse called The Clearing Company. The move is a direct push to boost its new prediction markets business, which it just started rolling out days ago. The Clearing Company isn’t operational yet but applied for CFTC approval in November. It’s notable for using digital ledger tech to clear trades in stablecoins for instant settlement. The startup’s founder, Toni Gemayel, and many execs are veterans of prediction market leaders Kalshi Inc. and Polymarket. The Clearing Company also recently closed a $15 million seed round led by Union Square Ventures and Coinbase Ventures.
The Infrastructure Grab
Here’s the thing about exchanges: the flashy trading interface is just the front door. The real, critical plumbing is the clearinghouse. It’s the entity that sits between buyers and sellers, guaranteeing the trade actually settles. By buying The Clearing Company, Coinbase isn’t just adding a feature—it’s buying the foundational engine for its “Everything Exchange” ambitions, specifically for derivatives and prediction markets. They’re bringing that core risk management and settlement function in-house. And the timing is no accident. This comes right on the heels of them launching prediction markets and equities trading. They’re building the plane while flying it.
Why This Clearing Company?
So why this particular startup? It’s all about the tech and the team. The promise of using a digital ledger and stablecoins for instant settlement is a huge deal. In traditional finance, settlement can take days (T+2, anyone?). If The Clearing Company can make it near-instant, that’s a massive efficiency gain. But honestly, the team might be the bigger asset. These are people who built and operated at Kalshi and Polymarket—the two names that basically *are* US prediction markets right now. Coinbase is buying proven, specialized talent in a niche it’s just entering. The spokesperson says nothing changes with their current routing deal through Kalshi, but come on. Long-term, why would you rely on a competitor’s plumbing when you own your own?
The Bigger Coinbase Game
This is a classic vertical integration play. Coinbase already has a CFTC-approved derivatives exchange. Now, with its own clearinghouse, it controls more of the stack. That means more control over the product experience, the risk parameters, and crucially, the economics. Prediction markets are a growing, but still nascent, category. By owning the infrastructure, Coinbase positions itself not just as a participant, but as a potential platform others might build on. Think about it: if their clearing tech is good enough for their own markets, could they license it? It’s a bet on becoming the backbone, not just a storefront. The “Everything Exchange” isn’t just about offering every asset class—it’s about controlling every layer of the transaction.
