Coinbase plans to launch prediction markets and tokenized stocks: report

Coinbase is reportedly preparing to launch its own prediction market with the backing of US-based operator Kalsi to expand the variety of assets available on the exchange as investor interest in cryptocurrencies wanes, Bloomberg and CNBC report.

The announcement is expected to be made next week in conjunction with Coinbase’s “Coinbase System Update” showcase on December 17th. The exchange declined to confirm details, but encouraged users to check the livestream for updates.

Rumors about a new prediction market have been circulating for nearly a month. In mid-November, technology researcher Jane Manchun Wong shared a screenshot of what appears to be Coinbase’s prediction market dashboard.

The Information first reported the planned announcement on November 19, and Bloomberg later cited sources saying the event would also include a tokenized stock offering.

Coinbase as an “everything” exchange

Coinbase’s move aligns with CEO Brian Armstrong’s long-held vision to build an “Everything Exchange,” a single platform that provides access to crypto tokens, tokenized stocks, and event-based contracts.

Armstrong told investors in May that Coinbase aims to become a major financial services app within the next 10 years.

The exchange is accelerating these efforts as competition from companies such as Robinhood, Gemini and Kraken increases.

Over the past year, these platforms have expanded their tokenized stock offerings outside the US and developed prediction markets, reflecting the growing demand for alternative trading vehicles.

This timing also comes as investor sentiment toward digital assets has cooled. A spate of liquidations of highly leveraged positions in mid-October caused a decline in the cryptocurrency market and prompted some investors to move their capital to safer assets.

For Kalsi, this partnership is another step in its strategy to integrate event contracts into mainstream trading platforms.

The company incorporated its prediction market into Robinhood earlier this year and is reportedly in talks with other brokers, including cryptocurrencies, to expand its reach.

Prediction markets allow users to guess the outcome of everything from elections to sports matches, and have grown in popularity over the past year. Traditional exchanges and crypto platforms alike are currently exploring them as new ways to attract traders.

Gemini recently received approval to roll out its own prediction market, while Crypto.com partnered with Trump Media & Technology Group in a similar effort.

Coinbase’s planned internal tokenized stock offering would put it on par with competitors like Robinhood and Kraken, which currently offer similar products outside the United States.