Major exchanges push into prediction markets — Coinbase, Crypto.com, JPMorgan and DWF Labs

Prediction markets are moving toward the crypto mainstream as major exchanges and institutions increase investment and operational involvement. Coinbase is acquiring on‑chain prediction startup The Clearing Company (deal expected to close in January), reinforcing its push into regulated prediction markets, tokenized assets and equities. Crypto.com is hiring quantitative traders to staff an internal market‑making desk that will buy and sell prediction contracts alongside external traders; the move aims to boost liquidity but raises questions about market structure, fairness and potential conflicts despite the firm’s claim that internal traders follow the same rules as outside participants. Bloomberg reports that JPMorgan is exploring crypto trading services for institutional clients, signalling deeper traditional‑finance integration and potential new liquidity sources. Separately, DWF Labs completed a 25 kg physical gold settlement as part of diversifying into real‑world commodities and hedging exposure. For traders: expect greater liquidity and product diversity in prediction markets and potential shifts in pricing as centralized market‑making ramps up. Monitor company disclosures on internal market‑making rules, Coinbase’s integration plans and any JPMorgan product announcements — plus regulatory and tax developments — which could affect market fairness, flows and volatility.