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

Coinbase is set to introduce a new prediction market in collaboration with Kalshi, according to a source familiar with the matter. This move is part of Coinbase’s strategy to diversify its asset offerings amidst a time when some investors are moving away from digital assets.

The prediction market is expected to be officially announced in the upcoming weeks, with potential news on the matter being revealed as soon as next week. Speculations about the launch have been circulating for almost a month, with a leaked screenshot of Coinbase’s prediction markets dashboard shared by researcher Jane Manchun Wong providing some insights into the new product.

Reports from The Information and Bloomberg have indicated that Coinbase will unveil the prediction markets powered by Kalshi at its upcoming “Coinbase System Update” event on December 17. Additionally, Bloomberg’s report mentioned that Coinbase will also announce a tokenized stock offering at the same event.

While Coinbase has not confirmed these reports to CNBC, the company has encouraged people to tune into its event for more information. There has been no confirmation regarding when the prediction markets will go live for users.

Coinbase’s upcoming product launches align with its goal of becoming an “everything exchange,” offering a wide range of assets for trading, including crypto tokens, tokenized stocks, and event contracts. CEO Brian Armstrong previously expressed this vision to investors, aiming to establish Coinbase as a leading financial services app within the next decade.

The company’s expansion into new financial instruments comes at a time when investor interest in digital assets is waning. Recent market fluctuations have led to a shift in investor sentiment, with some moving towards traditional safe-haven assets like gold.

Bitcoin, for example, has experienced a significant drop in value, reaching a low of around $85,000 in early December. This downward trend has also impacted Coinbase’s performance, with the company’s stock falling by over 16% in the past three months.

The partnership with Kalshi highlights the prediction market operator’s efforts to integrate its event contracts into various brokerage platforms, expanding its reach in a competitive market. Kalshi has previously collaborated with Robinhood to embed its prediction markets and is now looking to strike similar deals with other major brokerages, including those in the crypto industry.

Overall, Coinbase’s move to launch a prediction market with Kalshi signals its commitment to offering a diverse range of assets to its users, positioning itself as a comprehensive trading platform in the face of increasing competition from other players in the market.