Coinbase is preparing to launch an in-house prediction market powered by Kalshi, as the US-based cryptocurrency exchange accelerates its push to broaden the range of asset classes available on its platform.
A source close to the matter told CNBC that the product could be formally announced as early as next week. While the partnership will not be exclusive, Kalshi will be the only prediction markets operator integrated with Coinbase at launch, according to the source.
Coinbase told CNBC that details would be shared during its upcoming “Coinbase System Update” event. The company did not comment on when the prediction markets product would go live for users. SiGMA World sought comments from Kalshi. The platform has declined to comment.
Rumours build ahead of formal announcement
On 18 November, an alleged screenshot of a Coinbase prediction markets dashboard was shared by researcher Jane Manchun Wong on X, offering early clues about the product’s design.
Coinbase is working on Prediction Market pic.twitter.com/0T3HwdXmDy
— Jane Manchun Wong (@wongmjane) November 18, 2025
The Information first reported on 19 November that Coinbase planned to launch prediction markets in partnership with Kalshi, adding that the exchange would unveil the initiative at its December showcase. Bloomberg later published a similar report, citing a source familiar with the matter.
Part of Coinbase’s ‘everything exchange’ strategy
The move underscores Coinbase’s ambition to transform itself into an “everything exchange”, offering access to crypto assets, tokenised equities, and event contracts within a single platform.
In May, Coinbase chief executive Brian Armstrong told investors that the company aims to become a top global financial services app over the next decade. The expansion comes as competition intensifies from rivals including Robinhood, Gemini, and Kraken, all of which have launched tokenised equity products outside the US and are exploring prediction markets to varying degrees.
During the company’s third-quarter results, Coinbase Chief Executive Officer (CEO) Brian Armstrong’s sign-off rattled an $84,000 prediction market. Armstrong wrapped up his remarks with a sign-off: “Bitcoin, Ethereum, blockchain, staking, and Web3.”
What sounded like a list of crypto buzzwords was actually the answer to a live $84,000 betting market running on Kalshi and Polymarket. Across these sites, users had placed bets on which words Coinbase executives would mention during the call, part of a rising trend known as “mention markets.” As Armstrong ticked off the list, contracts tied to those terms instantly paid out.
Kalshi expands distribution as prediction markets surge
For Kalshi, the Coinbase deal highlights a broader strategy to embed prediction markets within major trading platforms, widening access as competition in the sector intensifies.
Earlier this year, Kalshi integrated its event contracts into Robinhood as part of a non-exclusive partnership. The company has also held discussions with other brokerages, including crypto-native platforms, to replicate similar distribution agreements, according to CNBC.
The push comes amid rapid growth in prediction markets across the US. Trading volumes across the sector reportedly reached $28 billion through October, with Kalshi alone recording $4.4 billion in volume for the month. A Kalshi-commissioned poll found that nearly half of Americans under 45 have used an online financial or prediction market.
Coinbase joins industry push for federal oversight
Coinbase’s move into prediction markets also aligns with its participation in the Coalition for Prediction Markets (CPM), a newly formed national industry body launched by Kalshi and Crypto.com.
The coalition brings together major platforms, including Coinbase, Robinhood and Underdog, and advocates for federally supervised, transparent access to prediction markets under the Commodity Futures Trading Commission (CFTC).
Industry friction intensifies
The rapid expansion of prediction markets has sharpened divisions within the US gambling sector. At the Global Gaming Expo (G2E) in Las Vegas, prediction markets dominated regulatory discussions, with state-regulated sportsbooks and tribal operators warning of competitive and integrity risks.
American Gaming Association chief executive Bill Miller warned that prediction markets threaten established regulatory standards. “The AGA and our members are mobilising across every battlefield,” he said.
At the same time, several major sportsbook operators have distanced themselves from traditional trade groups as they pursue prediction markets independently. DraftKings, FanDuel, and Fanatics have all exited the AGA, with Fanatics launching Fanatics Markets on 3 December and withdrawing from the association a week later.
Beyond the US, the model is spreading internationally. Matchbook is set to launch a new prediction market platform in the UK in January, while FanDuel is partnering with CME Group on an event-contracts joint venture.
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