Coinbase Global is expanding beyond cryptocurrency trading by entering prediction markets, as part of a broader push to become a multi-asset trading platform, according to The Wall Street Journal.
As reported by WSJ, Coinbase has partnered with prediction markets platform Kalshi, enabling users to trade contracts linked to real-world events such as sports, elections, and economic indicators. The contracts are structured as binary yes-or-no outcomes, a standard format in prediction markets. Users will be able to place trades using U.S. dollars or USDC, the stablecoin issued by Circle Internet Group.
The move aligns Coinbase with rivals such as Robinhood Markets, which has also expanded beyond stock trading into crypto, derivatives, and event-based contracts. Platforms with roots in both crypto and traditional finance are increasingly positioning themselves as all-in-one trading destinations.
“The everything exchange is our vision where users will be able to trade every asset, 24/7, from anywhere in the world on one trusted platform that starts with crypto,” Max Branzburg, vice president of product management at Coinbase, told The Wall Street Journal.
Prediction markets have gained traction after correctly forecasting the 2024 U.S. presidential election, following which a federal court ruling legalized election-related betting in the U.S. Kalshi recently raised $1 billion at an $11 billion valuation, while Polymarket secured backing from Intercontinental Exchange at a valuation of around $8 billion.
However, the sector continues to face scrutiny over regulatory oversight and ethical concerns. Critics argue that prediction markets resemble lightly regulated gambling and may be vulnerable to insider trading.
Kalshi cofounder and CEO Tarek Mansour defended the model, telling WSJ, “In gambling, there’s a house, the house always wins, and the odds are set by the house. In prediction markets, there’s no house. There are no limits on how much people can win.”
