Coinbase plans to launch prediction markets through a partnership with Kalshi, according to a source familiar with the matter, as the cryptocurrency exchange expands beyond digital assets amid cooling investor sentiment.
What Happened: Partnership Details
The companies will formally announce the arrangement soon, potentially as early as next week, the source told CNBC. Kalshi will serve as the exclusive prediction markets operator when the product launches, though the partnership remains non-exclusive.
Jane Manchun Wong, a Silicon Valley researcher, shared an alleged screenshot of Coinbase's prediction markets dashboard in a Nov. 18 post on X, offering early hints about the product. The Information first reported the partnership on Nov. 19, noting that Coinbase planned to unveil the offering at its Dec. 17 "Coinbase System Update" event.
Bloomberg published a similar report Thursday, citing a source who said Coinbase would also announce a tokenized stock offering at the showcase.
Coinbase declined to confirm the reports but directed inquiries to next week's event. The firm did not provide a timeline for when prediction markets would become available to users.
Also Read: Bitcoin Exchange Deposits Drop 76% Since Mid-November as Selling Pressure Eases
Why It Matters: Strategic Expansion
The move advances CEO Brian Armstrong's vision of transforming Coinbase into an "everything exchange" — a single platform for trading crypto tokens, tokenized stocks and event contracts. Armstrong outlined that strategy to investors in May, targeting a position among top financial services apps within the next decade.
Coinbase faces mounting pressure from rivals Robinhood, Gemini and Kraken, all of which launched tokenized equity offerings outside the U.S. within the past year.
The expansion comes as Bitcoin dropped to approximately $85,000 in early December — its lowest level since March — before recovering to $89,951, still down 23% over three months. Coinbase stock has fallen more than 16% during the same period.
The partnership extends Kalshi's strategy of embedding event contracts into brokerages as competition intensifies in prediction markets.
Kalshi previously integrated several markets into Robinhood this year through a non-exclusive arrangement and has held discussions with other major brokerages, including crypto platforms, according to a source.
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