Coinbase to Launch Exciting New Features: Prediction Markets and Tokenized Stocks

Coinbase is gearing up to introduce prediction markets and tokenized equities, marking its entry into two rapidly growing areas of digital finance. The exciting news is expected to be announced at a product showcase on December 17.

Key Takeaways

New Offerings: Coinbase will present prediction markets and tokenized stocks, focusing on in-house solutions.
Event Date: The official reveal is set for December 17, streamed live.
Market Trends: Demand for tokenized equities and prediction tools is on the rise, with increased interest from both traditional and crypto exchanges.
Competitive Landscape: As competition heats up, Coinbase aims to evolve into an “everything app” for digital assets.

Coinbase

Prediction Markets and Tokenized Stocks: Coinbase's New Directions

Coinbase's upcoming rollout includes prediction markets and tokenized stocks, two sectors that are quickly evolving in the digital finance world. Bloomberg reported that these features will be officially announced at an event scheduled for December 17, with plans for Coinbase to create tokenized stocks internally rather than collaborating with external firms.

Previously, Coinbase executives had shown interest in these areas, but this announcement brings clarity to their launch timeline.

New Tools Anticipated Amidst Growing Trader Interest

Recently, screenshots hinting at prediction market and tokenized stock capabilities within Coinbase's apps have circulated on social media, piquing traders' curiosity. A Coinbase spokesperson confirmed that the company will showcase these products during a livestream on December 17, urging viewers to tune in for comprehensive details.

This initiative aligns with Coinbase’s goal of becoming an “everything app” for digital assets, allowing users to trade cryptocurrencies, tokenized forms of traditional securities, and event-based markets. Keeping up with competitors that are also integrating similar features is crucial in the current landscape.

Surge in Trading for Digital Stock Representations

In 2023, Robinhood Markets began offering prediction products through Kalshi Inc, enabling users to wager on various economic and political events. Alongside Robinhood, crypto exchange Kraken has started listing tokenized US stocks and exchange-traded funds in selected regions, although they are not yet available in the US.

The market for tokenized equities—digital representations of stocks recorded on a blockchain—is expanding. Data from rwa.xyz shows that monthly trading volumes have increased by approximately 32% over the past 30 days, reaching around $1.45 billion as platforms continue to experiment with bringing traditional assets to the blockchain.

Rising Demand for Event Contracts in Prediction Markets

Prediction markets, which allow users to place bets on the outcomes of events such as elections, sports games, and major announcements, have seen rapid growth in the past year. Both traditional exchanges and crypto-native firms view these markets as innovative methods to monetize information.

Gemini, founded by Tyler and Cameron Winklevoss, recently received approval from the US Commodity Futures Trading Commission to launch its prediction platform, Gemini Titan, aimed at American customers. This licensing allows them to provide event contracts based on simple yes or no questions.

In addition, Crypto.com has partnered with firms like Trump Media & Technology Group to develop prediction markets, while Robinhood and trading firm Susquehanna have plans to acquire 90% of LedgerX, a regulated venue for trading event-driven crypto derivatives.