Coinbase Moves Closer to Launching Prediction Markets with Kalshi

Coinbase has moved closer to launching its long-planned prediction markets platform as part of a broader strategy to expand beyond cryptocurrency trading. The US-based exchange is preparing to announce prediction markets and tokenized equities during a company showcase scheduled for Dec. 17, according to Bloomberg, citing a person familiar with the plans. 

The initiative formed part of Coinbase’s effort to reposition itself as a multi-asset trading platform rather than a crypto-only exchange.

The company planned to issue tokenized stocks internally rather than relying on third-party issuers, marking a shift from earlier market experiments that depended on external partners. Coinbase executives had previously discussed interest in both prediction market apps and blockchain-based securities, but operational details had not been formally disclosed.

With Coinbase soon to announce its launch into prediction markets, it’s safe to say that competitive pressure has also risen due to the expanding offerings being made by traditional brokerage houses and crypto exchanges. 

Robinhood Markets began the year by enabling prediction market contracts in partnership with Kalshi, allowing users to trade on real-world outcomes. Globally, Robinhood and Kraken began tokenizing US stocks and exchange-traded funds internationally due to regulatory limitations in the country.

Tokenized equities symbolize conventional shares replicated on blockchain infrastructure, providing a faster settlement system and extended trading capabilities. Data from Bloomberg on tokenized asset transfers from rwa.xyz showed a 32% increase over the previous 30 days, reaching $1.45 billion in monthly transfers. 

This promotes the development of in-house solutions in major trading platforms.

Rivalryshapes prediction market growth

With the major platforms on the verge of entering the prediction markets, competition in the industry has also accelerated, driven mostly by Kalshi and Polymarket. According to Kalshi CEO Tarek Mansour, the industry's competitive environment has been a driving force, pushing prediction markets from a niche product to a full-scale financial product.

The ongoing competition between the two has been evident across regulation, finance, and media. Kalshi operated as a regulated market and won a legal case against the Commodity Futures Trading Commission (CFTC) related to political contracts. Polymarket, known for expanding its business as an unregulated cryptocurrency market and for facing issues with law enforcement agencies, enhanced its presence in the US market by acquiring CFTC-licensed entities.

Both companies raised substantial funds in support of their growth. Kalshi raised $1 billion in funds at a valuation of $11 billion, whereas Polymarket's valuation ranges from $12 billion to $15 billion. This financing indicates that investors are confident in event-based trading platforms despite the regulatory risks that these firms face.

The conflict between the regulation-first and crypto-native approaches has accelerated the industry's move toward professionalism. Regulatory environments, increased capitalization, and integration with the broader financial media landscape have positioned prediction markets to anticipate rapid growth.