Coinbase to soon unveil prediction markets powered by Kalshi, source says
Feature China | Future Publishing | Getty Images
coinbase It is preparing to launch an in-house prediction market backed by Kalshi, a source familiar with the matter told CNBC. This is a strategic play to increase the number of asset classes available on the cryptocurrency exchange at a time when some investors are staying away from digital assets.
The source said Coinbase and Kalshi will officially announce the prediction market “soon,” with news on the matter potentially coming as early as next week.
Rumors about the launch of the prediction market have been swirling for almost a month. Alleged screenshot of Coinbase’s prediction markets dashboard shared by Silicon Valley researcher Jane Manchun Wong an X post The news dated November 18 gave some clues about the new product.
Information first reported He added that on November 19, Coinbase plans to launch prediction markets powered by Kalshi, and that the exchange will unveil the new product at its “Coinbase System Update” event on December 17. Bloomberg also published a similar statement. report Coinbase will also announce a tokenized stock offering on its storefront, he added Thursday, citing a source familiar with the matter.
Coinbase declined to confirm the reports to CNBC but said it would accommodate its event next week. The firm did not comment on a timeline for when prediction markets will go live for its users.
Coinbase’s upcoming product launches underscore its push to transform itself into an “everything exchange,” or a one-stop shop for trading all kinds of assets, including crypto tokens, tokenized stocks, and event contracts. In May, CEO Brian Armstrong explained his “everything to exchange” vision to investors, saying Coinbase would aim to be the top financial services app within the next decade.
The trading platform is setting its sights on this goal as it faces intensifying competition from its rivals. robinhood, Gemini and Kraken. All three launched tokenized stock offerings to users outside the US last year, in addition to exploring prediction markets to varying extents.
Coinbase’s moves to expand the financial tools it offers to its users also come as investor sentiment towards digital assets declines. A series of liquidations of highly leveraged digital asset positions in mid-October triggered multiple pullbacks in the crypto market and led investors to move away from tokens and into gold and other safe assets.
Bitcoin It fell to $85,000 in early December, its lowest level since last March. The token was trading at $89,951, down 23% in the last three months. Coinbase has also fallen more than 16% in the last three months.
The deal also underscores U.S.-based prediction markets operator Kalshi’s push to place event contracts across a variety of brokerages, expanding its reach as the prediction markets space becomes increasingly competitive.
This year, Kalshi deployed many of its prediction markets on trading platform Robinhood as part of a non-exclusive partnership between the companies. Kalshi has also been in talks with several other major brokerages, including those in the crypto industry, with the goal of making more deals similar to the ones he made with Robinhood and now Coinbase, a source familiar with the matter told CNBC.
