Coinbase Partners with Kalshi to Enter Prediction Markets

In a strategic move to diversify its offerings, Coinbase has announced a partnership with Kalshi, a regulated platform for prediction markets. This collaboration aims to tap into the growing interest in prediction markets, particularly in light of recent legislative changes.

The Announcement/Development

Coinbase's partnership with Kalshi was formalized on December 17, 2025. The agreement allows Coinbase to offer its users access to Kalshi's prediction market products, which include bets on various events such as economic indicators, election outcomes, and more. The integration will be rolled out in phases, starting with a beta phase in Q1 2026, followed by a full launch by mid-2026. The team behind this project includes Coinbase's Head of Institutional Sales, Brett Tejpaul, and Kalshi's CEO, Tarek Mansour.

Why This Matters

This partnership addresses the growing demand for regulated prediction markets, which saw a 35% increase in trading volume in 2025 according to DappRadar. By integrating Kalshi's platform, Coinbase gains a competitive edge in the rapidly expanding $1.5 billion prediction market sector. Users benefit from a seamless trading experience across Coinbase's ecosystem, while developers can leverage Kalshi's API to build new applications. This move positions Coinbase to capture a significant share of the prediction market audience.

Market Response and Outlook

Following the announcement, Coinbase's token (COIN) experienced a 4.2% increase in value, trading at $245 as of December 19, 2025, per CoinGecko. The community response has been largely positive, with many users expressing excitement on social media platforms. Upcoming milestones include the beta launch in Q1 2026 and the full integration by mid-2026. This development aligns with broader trends in the crypto industry towards more diverse financial products, as seen in recent DeFi News.