Coinbase to launch prediction markets and tokenized stocks in December

Coinbase Global Inc. is set to unveil prediction markets and tokenized equities next week, two of the fastest-growing products in financial markets, a source familiar with the matter said.

This development follows the expansion of Prediction markets’ presence throughout the U.S., offering “event contracts” on sports, elections, news, entertainment, and other topics.

Coinbase prepares to launch tokenized stocks and prediction markets

Coinbase, the U.S.’s largest cryptocurrency exchange, will unveil its products at a showcase on December 17, according to the person, who asked not to be named because the information had not yet been made public. Its tokenized stocks will be launched in-house, not through partners, they said.

Initially, Coinbase executives said that they intend to enter these businesses, but they have not yet officially announced their plans. Still, screenshots of apps have been circulating on social network X, hinting at the functionality for several weeks.

When contacted for feedback, a Coinbase spokesperson declined to comment specifically on the company’s plans but said, “Tune in to the livestream on Dec. 17 to find out what new products Coinbase is shipping.”

The development is part of the company’s push to become an “everything app,” enabling traders to access multiple assets and markets, and to keep pace with competitors who are also diversifying.

Earlier this year, Robinhood Markets released prediction market products from Kalshi Inc. Additionally, Robinhood and the crypto exchange Kraken have tokenized U.S. stocks and exchange-traded funds, although only outside the U.S.

Data from tracker rwa.xyz shows that trading in tokenized equities, which are digital stocks tied to blockchain, has been rising, with monthly transfer volume up 32% in the last month to $1.45 billion.

Rising popularity of prediction markets attracts crypto and retail platforms

Prediction markets, where users can bet on events such as sports and elections, have experienced a surge in popularity over the past year, attracting attention from both traditional financial exchanges and cryptocurrency platforms. This week, Gemini, the crypto exchange co-founded by billionaire twins Tyler and Cameron Winklevoss, received approval to launch its own prediction markets.

Crypto.com, another exchange, has partnered with the likes of Trump Media & Technology Group Corp. to help them launch prediction markets.

Coinbase is announcing the new products as the crypto market continues to teeter after a sharp October selloff. The company’s shares are still up 8.3% this year.

In related development, Kalshi and Crypto.com have also established a national alliance of prediction market operators, which includes cryptocurrency exchange Coinbase, retail trading platform Robinhood, and sports gaming operator Underdog.

The group, the Coalition for Prediction Markets (CPM), has followed the boom in U.S. prediction markets since the start of the year. A federal court’s dismissal last year of a prohibition on election betting has also fueled the sector’s surge.

“This was the catalyst for growing investor interest, and this new coalition will further legitimize the sector, strengthening operating rules and setting a higher bar for integrity standards,” said Nick Jones, founder of crypto firm Zumo.

Prediction market platforms enable users to trade binary contracts on various outcomes, including politics, sports, economics, and entertainment.

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