Coinbase is preparing to take a significant step beyond conventional cryptocurrency trading with the launch of in-house prediction markets powered by Kalshi, according to a source familiar with the matter. The product is expected to be formally announced soon, potentially as early as next week, and marks a strategic effort by the U.S.-based crypto exchange to broaden its offerings at a time when enthusiasm for digital assets has cooled. While the partnership with Kalshi is not exclusive, Kalshi will be the sole prediction markets operator integrated into Coinbase at launch, underscoring a focused rollout strategy.
Speculation around Coinbase’s entry into prediction markets has been building for weeks, fueled by an alleged screenshot of a prediction markets dashboard shared online in mid-November. Subsequent reports from The Information and Bloomberg suggested that Coinbase plans to unveil the product during its upcoming “Coinbase System Update” event on December 17, alongside a possible announcement related to tokenized stocks. Coinbase has declined to confirm these details publicly, instead encouraging users and investors to tune into the event, leaving the exact launch timeline for the prediction markets unclear.
The move reflects a broader transformation underway at Coinbase as it seeks to reposition itself as a comprehensive financial marketplace. CEO Brian Armstrong has previously described this vision as building an “everything exchange,” where users can trade not only crypto tokens but also tokenized equities and event-based contracts. In an environment where platforms like Robinhood, Gemini, and Kraken have already rolled out tokenized equity products to non-U.S. users and explored prediction markets, Coinbase’s expansion appears less like experimentation and more like a competitive necessity.
Market conditions provide important context for this shift. Investor sentiment toward cryptocurrencies has softened following a wave of liquidations in mid-October that wiped out highly leveraged positions and triggered sharp pullbacks across digital asset markets. Bitcoin slid to around $85,000 in early December, its lowest level since March, and despite a modest rebound to roughly $89,951, it remains down more than 20% over the past three months. Coinbase’s own stock has also fallen over the same period, highlighting the pressure on crypto-native firms to diversify revenue streams and reduce reliance on volatile token trading volumes.
For Kalshi, the partnership represents another milestone in its effort to embed regulated prediction markets into mainstream trading platforms. The company has already integrated its event contracts into Robinhood through a non-exclusive arrangement and has reportedly held discussions with several other major brokerages, including firms within the crypto sector. By aligning with Coinbase, Kalshi gains access to a large and globally recognized user base, potentially accelerating adoption of prediction markets as a legitimate asset class.
From a broader industry perspective, Coinbase’s planned launch signals a gradual convergence between crypto platforms and traditional financial services. Prediction markets, when properly regulated, offer a novel way for traders to express views on real-world events, from economic indicators to political outcomes, without direct exposure to underlying assets. If executed carefully, this expansion could help Coinbase stabilize revenues, attract new users, and reinforce its long-term ambition to become a dominant financial app rather than a pure-play crypto exchange. As the lines between digital assets, tokenized securities, and event-based contracts continue to blur, Coinbase’s next move may offer a preview of what the future of multi-asset trading platforms will look like.
