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Coinbase Unveils Prediction Markets During System Update Event
In a significant expansion of its offerings, Coinbase has officially launched prediction markets on its platform. The announcement came during the company's highly anticipated "Coinbase System Update" livestream on December 17, 2025, at 2 PM PT. Users can now trade thousands of contracts powered by Kalshi, a federally regulated event contract platform.
You’ve got hot takes - now you’ll have a place to trade them.
— Coinbase 🛡️ (@coinbase) December 17, 2025
Here’s a first look at Prediction Markets on Coinbase ↓ pic.twitter.com/89VmttCRI0
The development marks Coinbase's entry into the burgeoning prediction markets sector, allowing users to wager on real-world events ranging from economic indicators to political outcomes. According to posts from Coinbase's official X account during the event, "Thousands of @Kalshi contracts will be available for trading on Coinbase." This integration positions Coinbase as a comprehensive exchange, blending traditional crypto trading with regulated event-based financial products.
Details of the Launch
The System Update event featured a first look at the new Prediction Markets interface on Coinbase. Users were teased with phrases like "You've got hot takes - now you'll have a place to trade them." The platform leverages Kalshi's infrastructure, making it the sole prediction market provider for Coinbase. Kalshi, known for its CFTC-regulated contracts, ensures compliance in the U.S. market.
Prior to the launch, multiple reports indicated Coinbase was preparing this feature. Sources familiar with the matter told CNBC that Coinbase would unveil prediction markets powered by Kalshi, aligning with the firm's "everything exchange" vision. Yahoo Finance and PYMNTS.com also highlighted the impending rollout, set to coincide with the December 17 event.
- Key Features:
- Thousands of event contracts across categories like finance, politics, and culture.
- Regulated trading via Coinbase Financial Markets (CFM), a National Futures Association (NFA) member.
- 24/7 availability with spot price tracking.
- Integration into the existing Coinbase app for seamless access.
Coinbase emphasized the risks involved, stating in event posts: "Trading prediction markets involves substantial risk and may result in the loss of your capital. Trade only if you understand the product and believe it is appropriate." This underscores the company's commitment to transparency amid growing interest in prediction markets.
Background on Prediction Markets and Kalshi Partnership
Prediction markets enable participants to buy and sell contracts based on the probability of future events. Successful bets yield payouts, making them a tool for hedging risks or gauging market sentiment. Kalshi has emerged as a leader in this space, recently forming a coalition with Crypto.com, Robinhood, and Underdog to promote the industry.
Coinbase's move comes after months of speculation. Bitcoin Magazine reported on potential tokenized stocks alongside prediction markets, while CoinDesk previewed tokenized assets, onchain AI agents, and global Base network features as part of the update. The partnership with Kalshi gives Coinbase access to U.S. users, an advantage over offshore platforms like Polymarket.
This launch builds on Coinbase's recent innovations, including perpetual-style futures for U.S. traders and enhanced DEX trading on Base. The company secured a MiCA license in Europe earlier in 2025, signaling global ambitions.
Market Implications and Investor Reaction
The news has sparked excitement in crypto and fintech circles. Posts on X during the livestream garnered thousands of views, reflecting strong community interest. Analysts view this as Coinbase pivoting toward diversified revenue streams beyond spot crypto trading.
Prediction markets have gained traction post-2024 U.S. elections, with volumes surging on platforms like Kalshi. Coinbase's scale, serving millions of users, could dominate the regulated segment. However, regulatory scrutiny remains, given the CFTC's oversight of event contracts.
During the event, Coinbase hinted at more announcements, urging viewers to tune in. Details on rollout timelines, eligible regions (initially U.S. excluding New York in some features), and additional products were shared live.
What This Means for Users
For Coinbase's 100 million-plus verified users, prediction markets add a new dimension to portfolio management. Traders can now express views on events directly alongside crypto assets. The platform's user-friendly design, integrated with the Coinbase app, lowers barriers to entry.
Legal disclosures highlighted that securities are offered by Coinbase Capital Markets (SIPC, FINRA member), while futures and swaps fall under CFM. Crypto remains via Coinbase Inc. Users are advised to conduct their own research, as trading carries loss risks.
As Coinbase evolves, this launch reinforces its role as a fintech powerhouse. The System Update event lived up to its hype, blending backend upgrades with consumer-facing products.
