Coinbase, America’s largest cryptocurrency exchange, is expected to launch prediction markets and tokenized stocks next week, but the company has not yet confirmed the development. A spokesperson of Coinbase said a livestream this Wednesday will feature new products, but he did not say what they are.
If Coinbase proceeds, it could make investing more convenient and flexible for everyday users – but it also means people will need to be more careful, because easier access often comes with a higher temptation to take risky bets.
The December 17 showcase, named Coinbase System Update, comes at a curious time. Bitcoin enthusiasm has cooled since October, when heavy losses in leveraged positions sent jittery investors scrambling for safer bets. Perhaps, Coinbase wants to give them more options and hence is introducing new products.
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Speculation around Coinbase’s prediction markets has been building for weeks. In mid-November, tech researcher Jane Manchun Wong posted a screenshot that appeared to show a prediction markets dashboard inside the Coinbase app.
Kalshi Partnership Powers New Markets
As per media reports, Coinbase has tapped Kalshi, a New York-based prediction market platform, to run its prediction markets. With this, Coinbase users will be able to bet on everything from election results to sports outcomes—the same way they’d trade stocks or crypto. Kalshi already handles about $1 billion in weekly trades.
What is more intriguing is that Coinbase has also joined the Coalition for Prediction Markets on December 11. “Our mission is to deliver financial freedom to the world,” said Faryar Shizad, Coinbase’s policy chief. He stressed the group will lobby Washington to keep these markets accessible.
Coinbase CEO Brian Armstrong has pushed this “everything exchange” vision for years, telling investors last year he wants Coinbase to dominate financial services within a decade. Rivals are not waiting — Gemini just got federal approval for prediction markets, and Crypto.com has partnered with Trump Media on something similar.
Given that competitors are launching similar products and regulators are closely monitoring the market, Coinbase’s upcoming update could provide significant insight into its future plans and the speed at which it intends to achieve them.
