Crypto Exchanges Ramp Up Their Push Into Prediction Markets

Prediction markets are quickly becoming one of crypto’s biggest new battlegrounds, drawing in major exchanges, venture capital, and even traditional finance. What used to be a niche corner of the industry is now moving closer to the center of how large platforms plan to grow in 2026 and beyond.

Crypto.com is the latest exchange to lean in, but its approach is already raising eyebrows. The company has been reported as recruiting a quantitative trader for an internal market-making desk that would actively buy and sell prediction contracts alongside regular users. Supporters argue that an in-house liquidity provider can tighten spreads and improve execution, making the market more efficient. Critics worry it could blur lines and create a perception problem if the same platform running the venue is also trading in it, even if the firm insists it plays by the same rules as everyone else. The move highlights a growing debate over transparency, governance, and fair access as centralized exchanges enter event-based trading.

Coinbase is taking a more structural route. The company is expanding its prediction market push through the acquisition of The Clearing Company, an onchain prediction startup built by a team with experience linked to major prediction platforms. The deal is expected to close in January, with financial terms not disclosed. Coinbase previously backed the startup through its venture arm and has framed prediction markets as a major growth opportunity, aligning with its broader “everything exchange” vision that spans crypto, tokenized assets, stocks, and event contracts.

Traditional finance is watching closely, too. JPMorgan is reportedly considering offering digital asset trading services for select institutional clients, a sign that demand from professional investors keeps rising as crypto and legacy markets continue to converge.