Coinbase is poised to make one of its most significant strategic moves in years. According to multiple reports, the leading U.S. cryptocurrency exchange is set to announce the launch of two major new product categories: prediction markets and tokenized U.S. stocks. The official unveiling is scheduled for a product showcase event on December 17, 2025. This expansion signals Coinbase’s ambition to evolve far beyond a simple crypto trading platform into a comprehensive “everything app” for modern finance.
Betting on the Future: What are Prediction Markets?
Prediction markets are a rapidly growing financial sector that allows users to trade contracts based on the outcome of real-world events. Think elections, major sports games, or economic data releases. Participants essentially bet on whether an event will happen (a “yes” or “no” outcome), with market prices reflecting the crowd’s collective wisdom. These markets are often regulated as financial derivatives rather than simple gambling. The sector has seen explosive growth, with trading volume on leading platforms surging from $1.3 billion in August to $7.7 billion in November 2025. By entering this arena, Coinbase is tapping into a high-demand product that blends financial speculation with engagement in current events.
Bringing Wall Street On-Chain: The Tokenized Stock Revolution
The second pillar of the launch is tokenized U.S. stocks. These are digital tokens on a blockchain that represent ownership in a traditional company’s stock. They aim to track the price of the underlying equity, offering a novel way to access traditional markets. The key advantages include the potential for 24/7 trading (unlike traditional market hours) and fractional ownership, lowering the barrier to entry for expensive stocks. This market is also heating up, with monthly transfer volumes for tokenized real-world assets growing 32% in a month to approximately $1.5 billion. Notably, reports suggest Coinbase will issue these tokenized stocks in-house, without relying on external partners, giving it greater control over the product.
A Crowded and Competitive Landscape
Coinbase is not entering a vacuum. The race to offer these innovative products is already intense. In prediction markets, platforms like Polymarket and Kalshi—with which Coinbase has been reportedly linked—currently dominate. Rival exchange Gemini just received key regulatory approval from the CFTC for its own prediction platform. In tokenized stocks, competitors like Robinhood and Kraken already offer these products to users outside the United States. Coinbase’s immense user base and regulatory standing will be its weapons in this fight, but success is not guaranteed in such a dynamic space.
The Bigger Picture: A Strategic Pivot for Growth
This launch is more than just two new features; it’s a core part of Coinbase’s survival and growth strategy. Facing volatility in core crypto markets and fierce competition, the company is aggressively diversifying its offerings. The goal is to become a one-stop financial super-app where users can trade crypto, bet on world events, and invest in traditional equities all in one place. This move aims to attract a broader spectrum of investors who may not be purely interested in cryptocurrencies, thereby fueling Coinbase’s next phase of growth.
The December 17th event will provide the crucial details on custody, regulation, and specific mechanics that institutional and retail traders alike are waiting for. If successful, this expansion won’t just change Coinbase—it could redefine how millions of people interact with every layer of the global financial market.
