According to reports from Bloomberg and CNBC, Coinbase is preparing to introduce its own prediction markets, leveraging the capabilities of U.S.-based operator Kalshi. This strategic development may diversify the array of assets available on the exchange at a time when interest in cryptocurrencies appears to be waning.

The announcement is anticipated to occur next week, coinciding with Coinbase’s “Coinbase System Update” showcase scheduled for December 17. While the exchange has refrained from confirming specific details, it has urged users to participate in the livestream for forthcoming updates.

Speculation regarding the new prediction markets has circulated for almost a month. In mid-November, technology researcher Jane Manchun Wong disseminated a screenshot that allegedly displayed Coinbase’s prediction markets dashboard.

The Information initially reported on the planned launch on November 19, with Bloomberg subsequently citing a source that indicated the event would also include the introduction of tokenized stocks.

Coinbase as an ‘Everything’ Exchange

Coinbase’s initiatives align with CEO Brian Armstrong’s long-expressed vision of developing an “everything exchange”—a comprehensive platform that provides access to crypto tokens, tokenized equities, and event-based contracts.

During a discussion with investors in May, Armstrong articulated the company’s ambition to emerge as a prominent financial services application within the next decade.

This acceleration in initiatives occurs in response to increasing competition from other platforms, such as Robinhood, Gemini, and Kraken.

Over the past year, these firms have broadened their tokenized stock offerings outside of the U.S. and have begun to examine prediction markets, reflecting a growing demand for alternative trading instruments.

The timing of Coinbase’s announcement also coincides with a cooling of investor sentiment toward digital assets, following a wave of liquidations in highly leveraged positions in mid-October that led to a pullback in the crypto market. This development has prompted some investors to redirect capital toward safer assets.

For Kalshi, the partnership signifies an additional step in its strategy to incorporate event contracts into mainstream trading platforms.

Earlier this year, the company integrated its prediction markets into Robinhood and is reportedly engaging in discussions with other brokerage firms, including those within the cryptocurrency sector, to broaden its reach.

Prediction markets enable users to speculate on various outcomes, from elections to sports events, and have gained considerable traction over the past year. Thus, both traditional exchanges and cryptocurrency platforms are now investigating this new approach to engage traders.

Gemini has recently received approval to launch its own prediction markets, while Crypto.com has partnered with the Trump Media & Technology Group to develop similar initiatives.

Coinbase’s prospective in-house tokenized stock offerings would position the company competitively alongside rivals such as Robinhood and Kraken, which currently provide comparable products in markets outside the U.S.

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