Coinbase (COIN) has launched a new prediction markets platform to U.S. users, allowing them to trade based on the outcomes of real-world events, including elections, sports, collectibles, and economic indicators.
The platform, announced in December, was built in partnership with Kalshi, a U.S.-regulated prediction market operator that was recently valued at $11 billion. Kalshi offers event-based contracts that function like simplified derivatives—traders buy a “yes” or “no” position on a specific outcome, with the price of each contract reflecting the probability assigned by the market.
The launch, which brings prediction markets to Coinbase’s U.S. user base for the first time, coincides with one of the biggest sporting events of the year, the Super Bowl, the cryptocurrency exchange announced in a post on X on Wednesday.
Prediction markets have received renewed attention in the past year, with many new entrants competing in the market. Transaction volumes on platforms such as Polymarket have surged as more and more users look to express political and economic views through on-chain financial products. These markets are often used to measure real-time public sentiment and probabilities, and some investors view them as alternative data sources.
Coinbase’s entry into this space could significantly increase the visibility and liquidity of the industry, especially since it provides users access through an existing regulated platform. The cryptocurrency exchange has long said it wants to become an “everything exchange,” and the launch of prediction markets marks its latest move in that direction.