Coinbase is preparing to launch a new in-house prediction market in collaboration with Kalshi, according to sources familiar with the matter. This development aims to broaden the range of asset classes available on the cryptocurrency exchange, particularly as some investors are becoming more cautious about digital assets. An official announcement regarding the prediction market is anticipated soon, potentially as early as next week.
The news of Coinbase's prediction market has been circulating for almost a month, with a screenshot of its dashboard shared by researcher Jane Manchun Wong providing early insights. Reports suggest that the launch will be part of Coinbase's "System Update" event on December 17, which will also feature the introduction of tokenized stock offerings.
While Coinbase has not confirmed these reports, the company indicated that more details will be shared at the upcoming event. The anticipated product launches reflect Coinbase's ambition to evolve into an "everything exchange," catering to a wide variety of trading instruments, including cryptocurrencies, tokenized stocks, and event contracts. This vision was articulated by CEO Brian Armstrong earlier this year, who aims for Coinbase to become a leading financial services app within the next decade.
Coinbase faces increasing competition from rivals like Robinhood, Gemini, and Kraken, all of which have recently introduced tokenized equity offerings and are exploring prediction markets. The effort to expand its offerings comes amid a cooling investor sentiment towards digital assets, exacerbated by recent market fluctuations. Kalshi, the operator of the prediction markets, is also seeking to expand its presence by partnering with various brokerages, following its recent collaboration with Robinhood.