Coinbase is preparing to introduce prediction markets and tokenized equities next week, according to a Bloomberg report citing a person familiar with the matter. The products are expected to be announced on December 17 during a company showcase, signaling a broader push by the exchange into regulated financial markets alongside digital assets. A spokesperson encouraged viewers to tune in to the livestream but did not confirm specific product details.
The move reflects Coinbase’s effort to expand its footprint into categories that combine market infrastructure, derivatives, and on-chain settlement. Screenshots circulating on social media in recent weeks suggested the exchange had been testing interfaces for both prediction markets and tokenized equities. The latter is expected to launch in-house, a sign that Coinbase intends to control both issuance and distribution without relying on external partners.
Rising Competition across Prediction Markets
Interest in prediction markets has surged in 2024 and 2025 as retail and institutional traders increasingly use them to price political, sports, and macroeconomic outcomes. The sector remains dominated by Kalshi and Polymarket, which saw combined volumes rise to $7.7 billion in November from roughly $1.3 billion in August. Coinbase’s entry would introduce a major exchange into a segment that is attracting regulatory attention and capital flows from large trading firms.
Competitive pressure across the industry is also intensifying. Gemini secured approval from the Commodity Futures Trading Commission this week to operate a Designated Contract Market, clearing the path for an event-contracts platform. Crypto.com formed a partnership with Fanatics earlier this month to develop a fan-driven prediction market focused on sports outcomes. These moves reflect a broader trend of exchanges seeking revenue diversification amid mixed spot trading volumes.
Tokenized Equities Extend Coinbase’s Strategy
Tokenized equities represent another front in the competition. The product would allow users to trade equity-linked instruments on blockchain rails with faster settlement and fractional access. For exchanges, it offers a way to expand into traditional finance while leveraging crypto-native infrastructure. For regulators, however, these offerings raise questions around securities classification, custody, and investor protections.
Coinbase shares declined 2.2% on December 11 to close at $269.02. The stock remains sensitive to product pipeline expectations, regulatory signals, and shifting market conditions as the exchange seeks to broaden its reach across both digital assets and adjacent financial markets.
