Coinbase to Launch Prediction Markets and Tokenized Equities Next Week

Coinbase Global Inc., the largest cryptocurrency exchange in the U.S., is preparing to unveil two rapidly growing financial products: prediction markets and tokenized equities at a product showcase on December 17.

• Product Launch: A source confirmed that Coinbase will announce the new products next week. The tokenized stocks—digital shares tied to the blockchain—will be launched in-house, not through external partners.
• Strategic Goal: This move is part of Coinbase’s strategy to become an “everything app,” offering traders access to a wide variety of assets and markets to keep pace with diversifying competitors.
• Market Context:
  • Prediction Markets:These platforms, where users bet on binary outcomes like sports or elections, have surged in popularity, especially in the U.S. following a federal court’s dismissal of an election betting prohibition.
    • Coinbase’s competitors, including Robinhood (partnered with Kalshi), Kraken, and Crypto.com (partnered with Trump Media), are already active in this space. Gemini also recently received approval for its own prediction markets.
  • Tokenized Equities (Real-World Assets): Trading volume for tokenized equities has been rising, with monthly transfer volume increasing by 32% to $1.45 billion in the last month, according to rwa.xyz data.
• Industry Alliance: Coinbase is also part of the newly formed Coalition for Prediction Markets (CPM), alongside Robinhood, Crypto.com, Kalshi, and others. The CPM aims to legitimize the sector, strengthen operating rules, and set integrity standards amid the boom in U.S. prediction markets.

Coinbase’s share price remains up 8.3% this year as the company prepares to enter these booming sectors.