Coinbase Global Inc. (NASDAQ:COIN) announced its acquisition of prediction market startup The Clearing Company on Monday as part of a deeper push into the emerging sector.
Coinbase Global shares are consolidating. What should traders watch with COIN?
Coinbase Moves Toward ‘Everything Exchange’ Goal
The Clearing Company, backed by Coinbase, secured $15 million in venture funding in August, intending to create an on-chain, permissionless prediction market. The startup is led by Toni Gemayel, who previously served as Head of Growth for both Polymarket and Kalshi.
“Toni and the team will help scale world-class prediction markets trading on Coinbase and accelerate our ambitions for this exciting category as part of the Everything Exchange,” the company said in a press release.
See Also: SoFi’s Stablecoin Launch And What It Means For Financial Institutions
Are Prediction Markets The Future Of Trading?
The announcement comes days after Coinbase formally integrated Kalshi to power its prediction markets, joining Robinhood Markets Inc. (NASDAQ:HOOD), which partnered with Kalshi earlier this year.
Shortly after, Coinbase filed lawsuits against Michigan, Illinois, and Connecticut, challenging state authority over the regulation of prediction markets. The company argued that the Commodity Futures Trading Commission should be the sole regulator of these markets, not individual state gaming regulators.
This move aligns with Coinbase’s ongoing expansion of its offerings as part of the Everything Exchange, aiming to provide a comprehensive trading platform for its users.
The Nasdaq-listed company also introduced a new stock trading feature, which will begin rolling out on its platform for select U.S. users.
Price Action: Coinbase shares rose 0.20% in after-hours trading to $248.40. The stock closed 1.13% higher at $247.90 during Monday’s regular trading session, according to data from Benzinga Pro.
Benzinga’s proprietary Edge Rankings show Growth as the strongest category for COIN at 96.55/100. To compare it with other popular cryptocurrency-focused stocks such as Bullish (NYSE:BLSH), click here.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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