• Coinbase (COIN) plans to announce prediction markets powered by Kalshi and tokenized equities on December 17, 2025, as confirmed by a Bloomberg report.
  • The move taps into surging demand for prediction markets amid rising crypto trading volumes, with Kalshi's integration enabling USDC-powered contracts custodied by Coinbase.
  • Regulatory scrutiny looms, with CFTC oversight and recent U.S. House hearings questioning legality, while Coinbase co-founded a coalition advocating for policy support.

Coinbase Global Inc. is set to unveil a major expansion into prediction markets and tokenized equities, leveraging a partnership with Kalshi, according to people familiar with the matter. The announcement, scheduled for December 17, 2025, aims to capitalize on growing interest in event-based trading among crypto natives, with contracts denominated in USDC and custodied directly on Coinbase's platform. This development follows rumors last month from Twitter leaks showing "Coinbase Predictions" with Kalshi integration, building on the exchange's role in broadening crypto access for its over 100 million verified users.

Efforts to integrate prediction markets have gained momentum as platforms like Phantom, with 20 million users, and Gemini rapidly adopt Kalshi-backed markets, reflecting broader tokenization trends in finance. However, Kalshi's volumes have remained flat since November 2025 despite these integrations, potentially pressuring retail-driven growth amid economic uncertainties. In a statement, Kalshi's CEOs highlighted the potential for millions of users to benefit from real-time odds, though analysts note that without a deal, the company could face challenges in boosting activity.

Regulatory hurdles add complexity, with prediction markets operating under CFTC oversight and recent U.S. House members questioning the legality of sports event contracts in hearings. Coinbase co-founded the Coalition for Prediction Markets on December 11, 2025, alongside Crypto.com, Kalshi, Robinhood (HOOD), and Underdog, to advocate for policy support and institutionalize event trading on-chain. A spokesperson for the coalition emphasized that regulatory stability is key for attracting institutional investments, echoing sentiments from industry leaders at recent finance conferences.

In the short term, the announcement could boost Coinbase's trading volumes and Kalshi activity, especially if integrations like Phantom's lift flat trends. Long-term, it positions Coinbase competitively against rivals like Robinhood and Polymarket, potentially driving wider adoption of tokenized assets. Experts caution that risks persist from retail declines at platforms such as Robinhood, but the coalition's efforts may help mitigate these by fostering a more regulated environment. Attempts to reach Coinbase for additional comments were unsuccessful as of press time.

Correction: An earlier version misstated the date of the coalition launch; it was December 11, 2025, not December 12.