Coinbase Pushes Beyond Crypto With Nationwide Prediction Markets Launch
Coinbase has rolled out prediction markets across all 50 U.S. states through a partnership with Kalshi, marking a significant expansion of the cryptocurrency exchange’s offerings beyond traditional digital asset trading.
In a Wednesday post on X, Coinbase said users can now trade on “any real-world outcomes across sports, politics, culture and more,” following the official launch of its prediction markets product. The nationwide rollout builds on plans first disclosed in December, when the exchange announced it would work with Kalshi to develop onchain prediction markets.
The move places Coinbase more directly in the growing market for event-based trading, an area that has gained traction among both crypto-native users and traditional market participants over the past several years.
What Prediction Markets Offer Users
Prediction markets allow users to trade event contracts tied to the outcome of real-world events. Each contract reflects the market’s collective assessment of the likelihood that a specific outcome will occur, with prices fluctuating based on user participation and sentiment.
Platforms such as Kalshi and Polymarket have popularized this model by offering contracts on a wide range of topics, including sporting events, political developments, and major news moments.
Coinbase’s integration brings that type of trading into a mainstream U.S. crypto exchange environment, potentially exposing prediction markets to a significantly broader audience.
The timing of the rollout is notable, arriving roughly a week ahead of the National Football League’s Super Bowl championship game, one of the largest annual sporting events in the United States and a period that typically draws heightened interest in outcome-based trading.
Part Of Coinbase’s “Everything Exchange” Strategy
The expansion into prediction markets aligns with Coinbase’s broader ambition to evolve into what it has described as an “everything exchange.”
In December, the company announced the acquisition of The Clearing Company as part of its push into this segment, signaling a longer-term commitment to event-based trading.
Coinbase has outlined plans to broaden its platform beyond cryptocurrencies to include products such as stock trading, tokenized assets, and prediction markets, all within a single ecosystem.
The addition of prediction markets represents another step toward that vision, positioning the exchange as a multi-asset platform rather than a crypto-only venue.
By partnering with Kalshi, Coinbase is also tying its offering to a platform that operates under federal oversight, an important consideration as prediction markets face increasing regulatory attention in the United States.
Legal Pressure On Prediction Market Platforms
Despite federal regulation, prediction markets remain a contentious area, particularly at the state level. Kalshi is regulated by the U.S. Commodity Futures Trading Commission but faces legal challenges from authorities in at least four states, including Massachusetts and Tennessee.
State regulators in those jurisdictions have argued that offering bets on sporting events without a gaming license violates local laws, even when platforms are federally regulated. These disputes underscore the ongoing tension between state gaming regulations and the expanding scope of federally approved event contracts.
Polymarket has faced similar pressure. Authorities in Tennessee have targeted the platform over sports betting-related concerns, while U.S. lawmakers have raised additional questions about oversight following reports of potential insider trading tied to political wagers.
Insider Trading Concerns And Political Wagers
Scrutiny around prediction markets intensified after reports that an unidentified user may have profited from insider information related to the capture of Venezuelan President Nicolás Maduro. The user reportedly earned more than $400,000 by betting on Maduro’s removal through Polymarket.
The incident prompted calls from U.S. lawmakers to address how insider information and market manipulation risks are handled on prediction platforms, particularly when contracts are linked to sensitive political or geopolitical events.
Those concerns continue to shape the public and regulatory debate around prediction markets, even as major platforms move to expand access.
