Coinbase, recognized as the largest cryptocurrency exchange in the US by trading volume, is preparing to launch its venture into prediction markets and tokenized stocks.

After collaborating with Kalshi and other US operators, this announcement is set to occur during a livestream next week. According to Bloomberg, the exchange intends to unveil details about these services, although it has not confirmed whether they will be part of the upcoming presentation.

Background on the Prediction Market Coalition

The report arrives shortly after Coinbase joined the Coalition for Prediction Markets (CPM), which includes notable industry participants like Kalshi and Crypto.com. “Our goal at Coinbase is to promote financial freedom, and prediction markets naturally contribute to fact-finding and truth-seeking,” stated Faryar Shizad, Coinbase’s chief policy officer.

Kalshi, established in 2018, is designed for users to speculate on the outcomes of real-world events similarly to trading financial assets. The platform competes with other prediction market platforms, boasting weekly trading volumes nearing $1 billion, according to financial analytics from Dune.

Coinbase’s entry into this sector occurs amid significant growth, with prediction markets achieving record trading volumes recently, approaching $4 billion per week despite skepticism from some experts regarding the validity of reported numbers.

In a competitive landscape, rival exchanges are rapidly advancing to integrate prediction markets into their operations, with Crypto.com announcing a new dedicated platform and Gemini, founded by the Winklevoss twins, recently obtaining approval from the Commodity Futures Trading Commission to offer these markets in the US.