Coinbase Global may unveil its prediction markets strategy at a Dec. 17 event, according to two sources familiar with the matter who spoke to Bloomberg. The cryptocurrency exchange, which has 105 million users globally, would join Gemini Space Station, Crypto.com and Robinhood Markets in bringing blockchain infrastructure to the emerging yes/no contracts industry.
The company previously signaled interest in event contracts through a September blog post but hadn't disclosed timing.
What Happened: Exchange Planning Announcement
Coinbase is expected to reveal plans for event contracts and tokenized stocks next week.
The exchange already has limited prediction market exposure through a custody relationship with Kalshi, announced last month, where Coinbase safeguards the platform's USDC holdings.
"Today we're announcing that Kalshi, the largest prediction market in the U.S., has chosen Coinbase Custody to safeguard their USDC – giving participants peace of mind when they trade on real-world outcomes," the company said in a statement at the time.
Whether Coinbase will offer sports event contracts remains unclear. The timing follows Gemini's regulatory approval to enter prediction markets, announced one day earlier.
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Why It Matters: Institutional Infrastructure
Coinbase processed $1 trillion in transaction volume last year, much of it from institutional participants. The exchange could expand institutional involvement in prediction markets, potentially improving liquidity in a sector that has relied heavily on retail traders.
Hoolie Tejwani, head of Coinbase Ventures, identified prediction markets as a "killer onchain use case" driven by blockchain's growth, smart contract security and stablecoin adoption. Polymarket, one of the world's largest prediction platforms, uses smart contracts and stablecoins for decentralized trading.
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