• Coinbase partners with Kalshi to introduce a prediction market, with a potential launch at its December 17 event.
• Coinbase aims to become a comprehensive financial services platform, offering tokenized stocks and event contracts.
• Investor sentiment in crypto softens, leading to a shift towards safer assets like gold, while Coinbase expands its product range.

Coinbase is preparing to launch a new prediction market in partnership with Kalshi, a CNBC report confirmed. The new product will expand the asset classes available on Coinbase, aiming to attract more users in a market where digital asset interest has cooled. A formal announcement of the prediction market could come as early as next week.

Kalshi Powers Coinbase’s Prediction Market Launch

Kalshi, a prediction markets operator, will power Coinbase’s new market offering. The partnership is non-exclusive, but Kalshi will be the sole operator of prediction markets on Coinbase at the time of launch. Reports about the prediction market surfaced after a screenshot of Coinbase’s dashboard was shared by researcher Jane Manchun Wong, suggesting the new product’s arrival.

The official launch may coincide with the “Coinbase System Update” event on December 17, where the exchange is expected to unveil the prediction market and other new offerings. While Coinbase has not confirmed the specifics of the product, it has teased users to tune in to the event for more details.

Coinbase Aims for Broader Financial Services Offering

Coinbase’s move to introduce prediction markets aligns with its long-term goal of becoming a comprehensive financial services platform. CEO Brian Armstrong recently outlined the company’s vision of evolving Coinbase into an “everything exchange.” This includes offering not only cryptocurrency but also tokenized stocks and event contracts, broadening the platform’s appeal beyond digital assets.

The shift comes as Coinbase faces rising competition from platforms like Robinhood, Gemini, and Kraken, which have all launched tokenized equity offerings in recent months. The competition is also exploring prediction markets, signaling Coinbase’s push to stay ahead in the evolving market.

Investor Sentiment Shifts as Coinbase Expands Product Range

Coinbase’s expansion efforts coincide with a cooling investor sentiment in the cryptocurrency space. After significant pullbacks in October, trading volumes in the crypto market have decreased. In response, investors have sought safer assets, such as gold, to hedge against volatility. Kalshi, the partner behind Coinbase’s prediction market, is also extending its reach. The company recently partnered with Robinhood to bring its prediction markets to a larger audience. 

Kalshi is making significant efforts to implement its event contracts on various brokerage platforms, thereby becoming a major player in the emerging prediction markets. Although Coinbase has not yet disclosed the exact launch date of the prediction market, the firm has invited the public to save the date for its December 17 event for more information.