Coinbase to soon unveil prediction markets powered by Kalshi, source says

Coinbase is on the verge of unveiling a new prediction market service, developed in collaboration with Kalshi, as confirmed by a source familiar with the situation. This initiative is part of Coinbase's strategy to diversify the asset classes available on its cryptocurrency exchange, particularly at a time when some investors are hesitant about digital assets. According to the insider, an official announcement regarding these prediction markets is expected imminently, potentially within the next week. Speculation about this launch has been circulating for several weeks, fueled by a screenshot purportedly showing Coinbase's prediction markets dashboard, which was shared by Silicon Valley researcher Jane Manchun Wong on social media. The Information first reported on November 19 that Coinbase intends to debut these prediction markets during its upcoming "Coinbase System Update" event scheduled for December 17. In a related report, Bloomberg cited sources indicating that Coinbase plans to reveal a tokenized stock offering at the same event. While Coinbase has not confirmed these developments, it has encouraged followers to stay tuned for updates during the next week's event. The company has not provided a specific timeline for when the prediction markets will become available to users. These forthcoming launches highlight Coinbase's ambition to evolve into an "everything exchange," enabling users to trade a variety of assets, including cryptocurrencies, tokenized stocks, and event contracts. In May, CEO Brian Armstrong articulated this vision to investors, emphasizing the company's goal of becoming a leading financial services application within the next decade. As Coinbase pursues this vision, it faces stiff competition from platforms like Robinhood, Gemini, and Kraken, all of which have recently introduced tokenized equity offerings and explored prediction markets. The push for more diverse financial instruments comes at a time when investor enthusiasm for digital assets has waned. Following a series of liquidations of leveraged digital asset positions in mid-October, many investors shifted their focus towards safer assets like gold. Bitcoin, for instance, recently dipped to approximately $85,000, marking its lowest point since March, and is currently trading at $89,951, reflecting a 23% decline over the past three months. In that same timeframe, Coinbase's stock has dropped by over 16%. Furthermore, this development aligns with Kalshi's objective to expand its event contracts within various brokerage platforms, as competition in the prediction markets sector intensifies. Earlier this year, Kalshi integrated its prediction markets into Robinhood, establishing a non-exclusive partnership, and is reportedly in discussions with other significant brokerages, including those in the cryptocurrency space, to secure similar agreements.