Coinbase is preparing to launch its own prediction market in partnership with Kalshi, aiming to broaden the range of asset classes available on its platform amid declining investor interest in digital currencies. A source familiar with the matter indicated that an official announcement could come as soon as next week.
Hints about the new product have surfaced over the past month, including a screenshot of Coinbase’s prediction markets dashboard shared online by researcher Jane Manchun Wong on November 18. Reports indicate that Coinbase plans to introduce the prediction markets at its “Coinbase System Update” event on December 17, alongside a tokenized stock offering. While Coinbase has not confirmed specific details or a launch timeline, the company has encouraged users to tune into the upcoming event.
The move highlights Coinbase’s strategy to evolve into an “everything exchange,” offering a wide array of trading options beyond cryptocurrencies, including tokenized stocks and event-based contracts. CEO Brian Armstrong has previously outlined this vision, aiming to position Coinbase as a leading financial services app over the next decade.
This expansion comes as competition intensifies from platforms such as Robinhood, Gemini, and Kraken, all of which have introduced tokenized equity offerings outside the U.S. and have explored prediction markets to varying degrees. The push into new financial instruments also coincides with a period of cooling sentiment toward digital assets, following significant liquidations of leveraged positions in October. Bitcoin, for example, dropped to roughly $85,000 in early December, down 23% over the past three months, while Coinbase shares have fallen more than 16% in the same period.
For Kalshi, the partnership marks a continued effort to integrate its event contracts into multiple trading platforms, increasing its footprint in the growing prediction markets space. Earlier this year, Kalshi partnered with Robinhood to embed its markets, and it has engaged in discussions with several other brokerages to expand its offerings further.