Coinbase Cranks Up Competition With New Prediction Market to Take On Robinhood
Coinbase is gearing up to launch its own prediction markets platform, signalling a major strategic shift as the crypto exchange pushes beyond traditional digital assets and squarely into new territory shared by rivals like Robinhood and others. This move comes amid a cooling crypto market and reflects Coinbase’s broader ambition to become a one-stop “everything” financial app that blends crypto, real-world assets, and event-based trading. (Investing.com India)
The news first broke via Tech in Asia reporting that Coinbase plans to unveil its prediction markets product, which could put it in direct competition with platforms such as Robinhood — already active in the space — as well as other players like Gemini, Kraken, and Polymarket. (Startup News)
Why It Matters
Prediction markets let users trade contracts that pay out based on real-world event outcomes — from elections and economic data to sporting results. They’re increasingly seen as financial tools for gauging collective expectations, and have drawn interest from both retail and institutional players. Coinbase’s entry signals that this niche is rapidly moving toward the mainstream. (AInvest)
According to reports, Coinbase’s offering is expected to be powered in part through a partnership with Kalshi, a U.S.-regulated prediction platform. The official reveal is anticipated at Coinbase’s “Coinbase System Update” event on December 17, 2025 — where the company may also introduce other products like tokenized stocks. (Investing.com India)
Competitive Context
Robinhood isn’t sitting still — its own prediction market arm has become one of the company’s fastest-growing products this year, with strong trading participation from retail investors. Coinbase’s entry raises the stakes in a market where trading volume and user engagement have grown significantly, making prediction markets an increasingly contested turf in fintech. (The Block)
What to Watch Next
- Regulatory landscape — Prediction markets operate under stringent oversight (e.g., by the U.S. CFTC), and industry firms are working together to advocate for clearer rules. (FinanceFeeds)
- User adoption — Whether Coinbase can attract users away from incumbents like Robinhood and specialized platforms such as Polymarket.
- Product experience — How Coinbase tailors its markets — including fee structure, supported events, and integration with its broader ecosystem.
🔑 Glossary
Prediction Markets — Trading platforms where users buy and sell contracts that pay out if a particular real-world event (e.g., election results, economic stats) occurs. Payout values typically reflect the market’s aggregated probability of an event happening.
Tokenized Stocks — Blockchain-based representations of traditional equities that mimic the price movement of a real stock but can be traded on crypto platforms.
Kalshi — A U.S.-based, federally regulated prediction market operator that provides compliant event-based trading infrastructure.
Source: https://www.techinasia.com/news/coinbase-said-to-launch-prediction-market-rivals-robinhood
