Coinbase Launches Kalshi Prediction Markets Across All 50 States

Coinbase expanded beyond crypto trading on Wednesday by launching a prediction market, powered by Kalshi, across all 50 states, marking its first nationwide distribution of event contracts on its platforms. 

The new product will allow users of the Coinbase exchange to trade on binary outcomes for sports, politics, culture, and cryptocurrency-related events. Customers can fund trades using cash or the dollar-backed stablecoin USDC held in their Coinbase account, according to Decrypt. 

All active Kalshi markets are now accessible directly through Coinbase, without requiring users to open separate accounts.

Coinbase first disclosed its intention to enter prediction markets in December, after trading activity surged across Kalshi and rival platform Polymarket throughout the second half of 2025. Weekly trading volumes during the fall reached the billions, accelerating capital inflows and investor interest.

By the final months of last year, the two prediction market apps had collectively raised more than $2.3 billion, with valuations surpassing $11 billion and $9 billion, respectively.

Company executives said early performance would be assessed using multiple indicators, including trade volume and how users incorporated prediction markets into broader trading strategies. Coinbase describes the product as a hedging vehicle for real-world risks rather than a wagering product, though it also notes that customer behavior will inform the development of additional contracts.

Coinbase, by including prediction markets in its main exchange product, has become the largest US-based crypto exchange with nationwide event-driven trading. The launch also increases the pressure on existing prediction market operators as the competition in the space expands, and states increase scrutiny against prediction market operators. 

Prediction markets chase sports betting features and liquidity growth

With Coinbase now offering greater access to prediction markets, operators Kalshi and Polymarket are working to increase liquidity in their markets to begin incorporating features synonymous with US sports betting, including multi-leg sports trades (parlays).

The difference between prediction markets and the best sports betting sites is that the prices of outcomes in the former are determined by participants' demand, rather than betting odds. To offer parlays, the platforms would need sufficient liquidity for individual outcomes, which is not the case with sportsbooks.

Analysts at Bank of America Merrill Lynch have also stated that parlays are an integral part of sportsbooks' profitability, as they contribute to their margins. They also stated that the transaction fees of the prediction markets would not be sufficient to attract conventional sports bettors.

To strengthen liquidity, Polymarket and Kalshi have introduced incentives for active traders supplying capital to markets. Kalshi also operates an internal trading unit, a practice that prompted criticism and a proposed class-action lawsuit alleging conflicts of interest.

Kalshi began offering its first customizable parlay feature in December, reportedly facilitating over $100 million in volume in a single week, according to CEO Tarek Mansour