Prediction markets are gaining prominence in the cryptocurrency sector, drawing attention from major exchanges and traditional financial entities. Crypto.com is facing scrutiny over its plans to establish an internal market-making unit that would trade contracts alongside other market participants, raising concerns about fairness and potential conflicts of interest.
In a move to bolster its presence in this space, Coinbase has acquired The Clearing Company, a startup focused on on-chain prediction markets. This acquisition indicates Coinbase's commitment to regulated prediction markets, as it aims to leverage the expertise of a team with backgrounds at Kalshi and Polymarket.
Additionally, JPMorgan Chase is reportedly exploring crypto trading options for institutional clients, signaling the ongoing integration of digital assets into traditional finance. Meanwhile, firms like DWF Labs are adapting by diversifying into physical commodities to manage their exposure to the volatile crypto market.