Coinbase, the largest US-based cryptocurrency exchange, is set to launch its own prediction market in collaboration with Kalshi, a major federally regulated financial exchange.
Key Developments and Strategy
- Prediction Market Launch: Anticipation for the prediction market has been building, with a formal unveiling expected at the "Coinbase System Update" event scheduled for December 17. A leaked dashboard screenshot shared by researcher Jane Manchun Wong has offered a sneak peek at the product.
- Tokenized Stock Offering: Bloomberg suggests that during the same event, Coinbase is also likely to announce a tokenized stock offering, aligning with similar reported plans by Tether.
- "Everything Exchange" Vision: This launch is part of CEO Brian Armstrong's long-term strategy, articulated in May, to transform Coinbase into an "everything exchange"—a comprehensive platform trading a wide variety of assets, including cryptocurrencies, tokenized stocks, and event contracts, aiming to become a leading financial services application within the next decade.
Context and Competition
- Market Context: The exchange is making these aggressive expansion moves—which also include acquisitions like crypto derivatives exchange Deribit and seven other deals this year—despite a shift in digital asset investor sentiment. The largest cryptocurrencies, including Bitcoin (BTC), have recently retraced by over 30% since October.
- Stock Performance: Coinbase's stock (COIN) has dropped significantly, with its current valuation of $267 per share reflecting a decline of over 39% in recent months.
- Rival Competition: Coinbase is facing increased competition from rivals like Robinhood, Gemini, and Kraken, who have also introduced tokenized equity offerings outside the US and are exploring prediction markets.
Coinbase has not officially confirmed these developments but has encouraged stakeholders to tune into its upcoming event for full details.
December 2025, Cryptoniteuae