Coinbase is reportedly preparing to launch its own prediction markets, powered by US operator Kalshi, in a move that could expand the types of assets available on the exchange as investor interest in cryptocurrencies cools, according to reporting from Bloomberg and CNBC.
The announcement is expected to come next week, coinciding with Coinbase’s “Coinbase System Update” showcase on December 17. While the exchange declined to confirm the details, it encouraged users to tune into the live stream for updates.
Rumors of the new prediction markets have been circulating for almost a month. In mid-November, tech researcher Jane Manchun Wong shared a screenshot of what appeared to be Coinbase’s market prediction dashboard.
The Information first reported the planned launch on November 19, and Bloomberg later cited a source as saying the event would also feature the rollout of tokenized shares.
Coinbase as an ‘everything’ exchange
Coinbase’s move aligns with CEO Brian Armstrong’s long-held vision to build an “everything exchange” — a single platform that offers access to crypto tokens, tokenized stocks and event-based contracts.
Armstrong told investors in May that Coinbase aims to become a leading financial services app within the next decade.
The exchange is accelerating these initiatives amid increasing competition from firms such as Robinhood, Gemini and Kraken
Over the past year, these platforms have expanded tokenized equity offerings outside of the US and explored prediction markets, reflecting growing demand for alternative trading instruments.
The timing also comes as investor sentiment towards digital assets has cooled. A wave of liquidations in highly leveraged positions in mid-October triggered a pullback in the crypto market, prompting some investors to shift capital to safer assets.
For Kalshi, the partnership marks another step in its strategy to integrate event contracts into mainstream trading platforms.
Earlier this year, the company embedded its prediction markets into Robinhood, and it is reportedly in discussions with other brokers, including those in crypto, to expand its reach.
Prediction markets let users speculate on outcomes ranging from elections to sports betting, and have become increasingly popular over the past year. Both traditional exchanges and crypto platforms are now exploring them as a new way to engage traders.
Gemini recently received approval to roll out its own prediction markets, while Crypto.com has partnered with Trump Media & Technology Group on similar initiatives.
Coinbase’s planned internal tokenized stock offering would put it on par with competitors such as Robinhood and Kraken, which currently offer similar products outside the US