TLDR
- Coinbase is launching a prediction markets platform in partnership with Kalshi
- The platform will operate under Coinbase Financial Markets using Kalshi’s CFTC-regulated infrastructure
- Users will be able to trade on events across economics, politics, sports, and technology using USDC or US dollars
- Coinbase Custody will safeguard all USDC reserves for Kalshi’s platform
- Kalshi recently hit $4.4 billion in monthly trading volume as prediction markets grow
Coinbase is entering the prediction markets space through a partnership with Kalshi. The cryptocurrency exchange plans to launch a new platform that allows users to trade on real-world events.
The platform will operate under Coinbase Financial Markets, the company’s derivatives division. It will use Kalshi’s existing infrastructure, which is regulated by the Commodity Futures Trading Commission.
Leaked screenshots show the interface will feature prediction markets across multiple categories. Users will be able to trade on economics, politics, sports, and technology events.
Excited to have partnered with @Kalshi to power prediction markets with USDC, safeguarded by Coinbase Custody.
Kalshi users can now trade markets on real-world events with trust, transparency, and security.
Learn more: https://t.co/2dujJiJ36L pic.twitter.com/2fb6ycVXzP
— Coinbase Developer Platform🛡️ (@CoinbaseDev) November 13, 2025
The platform will accept both USDC and US dollars for trading. This approach aims to make prediction markets accessible to both crypto and traditional finance users.
Tech researcher Jane Manchun Wong uncovered the development before the official announcement. She posted screenshots to X showing what the new platform interface looks like.
Coinbase Custody Handles Security
Coinbase Custody has been selected to safeguard USDC reserves used on the Kalshi platform. The custody service will handle all USDC deposits, settlements, and payouts.
This arrangement was announced in November 2024. Coinbase holds the stablecoin reserves in cold storage for added security.
The custody partnership addresses trust concerns that have historically plagued prediction markets. Many platforms in the past lacked strong oversight or consistent settlement systems.
Kalshi operates under CFTC supervision. This makes it one of the first fully regulated exchanges for real-world event trading in the United States.
USDC provides price stability compared to other crypto assets. This stability allows users to focus on event outcomes rather than worrying about collateral volatility.
Growing Competition in Prediction Markets
The prediction markets sector has seen rapid growth in recent months. Kalshi’s monthly trading volume recently reached $4.4 billion.
Other cryptocurrency platforms are also entering the space. Crypto.com launched a prediction markets product in partnership with Trump Media.
Gemini is developing a “super app” that will include prediction markets features. The increasing competition is pushing companies to innovate quickly.
Polymarket has also seen trading volumes surge. Interest in event-based trading has grown especially around political elections and economic outcomes.
By launching its own platform, Coinbase positions itself in this expanding market. The company can now offer prediction markets alongside its crypto and traditional financial products.
The integration of USDC highlights potential for stablecoin adoption. Users can engage in prediction markets with a secure digital currency.
Regulatory Framework and Challenges
Kalshi’s CFTC regulation provides a compliance framework for Coinbase’s platform. This allows event-based trading without typical legal hurdles.
The partnership bridges traditional financial services and decentralized markets. Coinbase can offer compliant products that integrate both regulated derivatives and crypto assets.
Prediction markets face regulatory challenges in different jurisdictions. While Kalshi is fully licensed in the United States, other countries treat these platforms differently.
Concerns about market manipulation have emerged. During a Coinbase earnings call, the CEO mentioned crypto-related words that matched active prediction market contracts.
This raised questions about whether individuals could influence outcomes on markets where they have direct involvement. The debate continues about proper safeguards.
As more global users join prediction markets, companies may face increased legal scrutiny. Operational complexity will likely grow across different regulatory environments.
Coinbase’s move into prediction markets represents an expansion of its business model. The company aims to become an all-encompassing exchange for both crypto and traditional financial markets.
