Coinbase Preps Launch of Kalshi-Powered Prediction Market

Coinbase is on the verge of launching an in-house prediction market powered by Kalshi, according to reports from CNBC and other sources. The move is seen as a strategic expansion of the cryptocurrency exchange's asset offerings, especially as investors have shown a cooling interest in digital assets according to recent data. A formal announcement is expected soon, with some sources indicating it could come as early as next week.

Rumors about the prediction market have been circulating for nearly a month, with leaked screenshots and hints from industry insiders fueling speculation. One such leak came from Silicon Valley researcher Jane Manchun Wong, who shared what appeared to be Coinbase's prediction market dashboard on social media according to reports. The Information and Bloomberg also reported that the feature would be unveiled at Coinbase's "Coinbase System Update" event on December 17 according to sources.

Coinbase has not officially confirmed the reports but has invited users to watch its event next week for more details. The company has faced declining investor enthusiasm in recent months, with its stock and Bitcoin prices dropping significantly. This expansion into prediction markets is part of Coinbase's broader effort to become an "everything exchange," offering a wide range of financial products beyond crypto according to industry analysts.

A New Frontier for Prediction Markets

Prediction markets have gained traction as a hybrid between traditional finance and crypto, offering traders the ability to bet on real-world events like elections and economic indicators. The U.S. market for prediction contracts has seen a surge in popularity since the start of 2025, partly due to a federal court ruling that cleared the way for election betting. Kalshi, a U.S.-regulated prediction market operator, has been at the forefront of this movement, partnering with platforms like Robinhood and now Coinbase.

The Coalition for Prediction Markets (CPM), launched recently by Kalshi and Crypto.com, represents a growing industry effort to establish federal standards and protections for these markets according to industry reports. The group includes major players like Coinbase, Robinhood, and Gemini, and aims to address issues like insider trading and regulatory fragmentation according to industry sources. With Kalshi's valuation now surpassing $11 billion, the company has emerged as a dominant force in the sector according to financial analysis.

Strategic Moves in a Competitive Landscape

Coinbase's foray into prediction markets and tokenized stocks is part of a broader industry trend. Rivals like Robinhood and Kraken have already launched their own tokenized equity offerings, while Gemini and Crypto.com have also entered the prediction market space according to market reports. The competition is intensifying as exchanges seek to diversify their offerings and retain users amid declining crypto interest according to industry analysis.

Phantom, a major crypto wallet with 20 million users, has also integrated Kalshi's prediction markets into its platform, allowing users to trade on real-world outcomes using Solana-based tokens according to industry reports. This move highlights the increasing demand for all-in-one platforms that combine trading, DeFi, and prediction markets according to market analysis. MetaMask and other major wallets have similarly expanded their features, adding prediction markets and tokenized assets to their ecosystems according to industry sources.

What This Means for Investors

For investors, Coinbase's new features could offer a way to diversify their exposure beyond traditional crypto and tokenized stocks. Prediction markets allow users to speculate on a wide range of events, from macroeconomic data releases to sports outcomes according to financial analysts. The introduction of these products may also help Coinbase attract new retail investors who are seeking alternative ways to engage with financial markets according to market analysis.

However, the success of these initiatives will depend on regulatory clarity and user adoption. The U.S. Securities and Exchange Commission (SEC) has signaled a shift in policy under new chair Paul Atkins, who has emphasized innovation-friendly regulation and clearer guidelines for crypto according to industry reports. While this could ease compliance burdens for platforms like Coinbase, the final outcome will depend on ongoing congressional negotiations over a comprehensive crypto bill according to policy analysts.

As the crypto market continues to evolve, Coinbase's expansion into prediction markets and tokenized assets reflects a broader industry push to integrate digital and traditional finance. With growing regulatory support and increasing user demand, these new offerings could reshape how investors approach financial markets in the coming years.