Coinbase is reportedly gearing up to introduce its own prediction markets, powered by U.S.-based operator Kalshi. This development could broaden the variety of assets available on the exchange as investor interest in cryptocurrencies wanes, according to reports from Bloomberg and CNBC.
The announcement is anticipated next week, coinciding with Coinbase’s “Coinbase System Update” showcase on Dec. 17. While the exchange has not confirmed specific details, it has encouraged users to tune into the livestream for updates.
Speculation about the new prediction markets has been circulating for nearly a month. In mid-November, tech researcher Jane Manchun Wong shared a screenshot that seemed to depict Coinbase’s prediction markets dashboard.
The Information initially reported the planned launch on Nov. 19, and Bloomberg later cited a source indicating that the event would also highlight the rollout of tokenized stocks.
Coinbase as an ‘everything’ exchange
Coinbase’s initiatives align with CEO Brian Armstrong’s longstanding vision of creating an “everything exchange”—a single platform that provides access to crypto tokens, tokenized equities, and event-based contracts.
Armstrong told investors in May that Coinbase aims to be a leading financial services app within the next decade.
The exchange is accelerating these initiatives in response to increasing competition from firms like Robinhood, Gemini, and Kraken.
Over the past year, these platforms have expanded their tokenized stock offerings outside the U.S. and explored prediction markets due to rising demand for alternative trading instruments.
This timing also coincides with a cooling investor sentiment towards digital assets. A wave of liquidations in highly leveraged positions in mid-October caused a pullback in the crypto market, leading some investors to reallocate their capital into safer assets.
For Kalshi, this partnership represents another step in its strategy to integrate event contracts into mainstream trading platforms.
The company earlier embedded its prediction markets into Robinhood, and it is reportedly in talks with other brokers, including those in the crypto space, to broaden its footprint.
Prediction markets allow users to speculate on various outcomes, from elections to sports events, and they have gained popularity over the last year. Both traditional exchanges and crypto platforms are now looking into them as a fresh means to engage traders.
Gemini recently secured approval to launch its own prediction markets, while Crypto.com has entered into a partnership with the Trump Media & Technology Group to develop similar initiatives.
Coinbase’s upcoming in-house tokenized stock offerings would position it on par with competitors like Robinhood and Kraken, which currently provide similar products outside the U.S.
