Coinbase's 'Everything Exchange' Vision Takes Shape with Prediction Market Launch

Coinbase Global Inc. (COIN) is set to expand its footprint in the digital asset ecosystem with the launch of a regulated prediction market platform, a move that signals its ambition to evolve beyond traditional cryptocurrency trading. The platform, powered by Kalshi Inc. (KALSHI), will allow users to trade on the outcomes of real-world events such as elections, economic indicators, and sports results, according to a report. The service is expected to be unveiled on Dec. 17, during an event where Coinbase will detail additional offerings according to the report.

The partnership leverages Kalshi's infrastructure, which has already integrated with Coinbase Custody to secure USDC (USDC-USD) stablecoin reserves. This collaboration, announced on Nov. 13, enhances trust in the prediction market by utilizing Coinbase's institutional-grade custody solutions, including cold storage and compliance protocols. Kalshi, valued at over $10 billion in 2025, has seen rapid growth, including a recent integration with Google Finance, which now displays real-time odds from its platform.

Coinbase's foray into prediction markets aligns with broader industry trends. Kalshi reported $4.4 billion in trading volume in October 2025, its peak month, while competitor Polymarket saw $3.02 billion in the same period. The move also positions Coinbase to compete with Robinhood Markets Inc. (HOOD), which launched its own prediction market for sports and elections earlier this year. By offering event-based trading, Coinbase aims to diversify its revenue streams beyond crypto transactions and attract users seeking exposure to alternative financial instruments.

The platform's use of USDC as a settlement asset underscores the growing role of stablecoins in mainstream finance. USDC, a dollar-pegged token issued by Circle Internet Group (CRCL), provides fast and stable settlements, making it ideal for real-time trading. Coinbase's integration with its layer-2 network, Base, further reduces transaction costs and speeds for users.

Coinbase's strategic pivot reflects CEO Brian Armstrong's vision of transforming the company into an "Everything Exchange" for both digital and traditional assets according to industry analysis. Recent initiatives include launching a digital token sales platform, a regulated U.K. savings account, and tokenized stock offerings in Singapore according to financial reports. These moves highlight Coinbase's efforts to bridge the gap between crypto and traditional finance, a strategy that has driven a 4.6% year-to-date gain in its stock price.

The prediction market expansion also comes amid heightened regulatory scrutiny in the crypto sector. Kalshi, a U.S.-regulated exchange, has navigated legal challenges by adhering to securities laws, setting a precedent for compliant event-based trading. This framework could provide Coinbase with a competitive edge as it seeks to attract institutional investors and retail users wary of unregulated platforms.