Coinbase is expanding its platform through a partnership with Kalshi to integrate prediction markets. This comes on the heels of Kalshi securing $1bn in funding at an $11bn valuation and follows Kalshi and Crypto.com announcing the formation of the Coalition for Prediction Markets.
The new feature allows US users to trade contracts that settle based on verifiable outcomes related to sports, elections and macroeconomic data using US dollars or USDC.
The initiative represents a shift from operating solely as a cryptocurrency exchange towards a more comprehensive retail trading platform. By adding high-engagement financial products, Coinbase aims to diversify revenue streams and retain users within a single ecosystem.
The move aligns with Coinbase's strategy to operate as a regulated financial service rather than a crypto-only gateway. The introduction of prediction markets follows earlier platform developments including zero-commission equity trading, planned tokenised stocks and AI-based advisory tools.
Back in August, Coinbase announced plans to expand its flagship trading app into an "everything exchange," offering tokenised real-world assets, equities, derivatives, prediction markets and early-stage token sales. The rollout was planned to start in the US, with international expansion gradually subject to regulatory approvals.
Just this week, Kalshi and the plaintiff in a New York class action, Daniel Yee, jointly requested to postpone the January pretrial conference to allow time for the company to file motions to dismiss the case and compel private arbitration. In a separate matter, the Maryland Attorney General backed a federal judge's earlier denial of Kalshi's injunction, which the exchange had appealed in October.
The Coalition for Prediction Markets, announced in December, includes operators such as Coinbase, Robinhood and Underdog
