Coinbase Set to Launch Prediction Markets and Tokenized Stocks
Coinbase is reportedly preparing to launch its own prediction markets, powered by U.S.-based operator Kalshi, in a move that could expand the types of assets available on the exchange amid cooling investor interest in cryptocurrencies, according to reporting from Bloomberg and CNBC. The announcement is expected to come next week, coinciding with Coinbase's 'Coinbase System Update' showcase on Dec. 17. While the exchange declined to confirm specifics, it encouraged users to tune into the livestream for updates. Rumors of the new prediction markets have been circulating for nearly a month. In mid-November, tech researcher Jane Manchun Wong shared a screenshot of what appeared to be Coinbase's prediction markets dashboard. The Information first reported the planned launch on Nov. 19, and Bloomberg later cited a source saying the event would also feature the rollout of tokenized stocks.
Coinbase as an 'Everything Exchange'
Coinbase's moves align with CEO Brian Armstrong's long-stated vision of building an 'everything exchange' — a single platform offering access to crypto tokens, tokenized equities, and event-based contracts. Armstrong told investors in May that Coinbase aims to become a leading financial services app within the next decade. The exchange is accelerating these initiatives amid rising competition from firms such as Robinhood, Gemini, and Kraken. Over the past year, these platforms have expanded tokenized stock offerings outside the U.S. and explored prediction markets, reflecting growing demand for alternative trading instruments. The timing also comes as investor sentiment toward digital assets has cooled. A wave of liquidations in highly leveraged positions in mid-October triggered a crypto market pullback, prompting some investors to shift capital into safer assets.
Prediction Markets: Kalshi and Mainstream Platform Partnerships
For Kalshi, the partnership marks another step in its strategy to integrate event contracts into mainstream trading platforms. Earlier this year, the company embedded its prediction markets into Robinhood, and it is reportedly in discussions with other brokers, including those in crypto, to expand its reach. Prediction markets let users speculate on outcomes ranging from elections to sports games, and they have grown increasingly popular over the past year. Traditional exchanges and crypto platforms alike are now exploring them as a new way to engage traders. Gemini recently received approval to roll out its own prediction markets, while Crypto.com has partnered with the Trump Media & Technology Group on similar initiatives.
Tokenized Stocks: Competing with Robinhood and Kraken
Coinbase's planned in-house tokenized stock offerings would put it on par with competitors like Robinhood and Kraken, which currently offer similar products outside the U.S. Tokenized stocks represent traditional equities as blockchain-based tokens, enabling investors to trade company shares on crypto exchanges. This sector has been growing rapidly, and Coinbase's entry will further drive mainstream adoption. By offering both prediction markets and tokenized stocks, Coinbase aims to differentiate itself in a crowded market and capture a broader user base seeking diverse trading opportunities.