Coinbase Set to Shake Up Crypto With Prediction Markets on December 17
Key Takeaways:
- Coinbase will launch prediction markets and in-house-tokenized stock trading on December 17.
- In the last month, tokenized equity activity has increased by 32% to reach a high in transfer volume of $1.45 billion.
- Simple and tokenized assets Major competitors such as Gemini, Robinhood, Crypto.com, and Kraken are speeding up their move into prediction markets.
Coinbase is poised to go big in other areas besides traditional trading of crypto. The exchange intends to roll out two product lines that are in great demand prediction markets and tokenized stocks in a livestream event on December 17. These products are becoming some of the most rapidly expanding products in the digital-asset ecosystem, and are becoming of interest to retail traders and institutional platforms.
Coinbase Prepares a Major Product Expansion
This strategy has been alluded to by Coinbase since mid-year but will be fully shown off on December 17. The company is implementing a native prediction market system and a tokenized stock trading system that is wholly in-house. The creation of tokenized stocks in-house is a very distinctive move when compared to competitors, most of whom depend on third-party issues or settlement partners.
Social media has already leaked screenshots of early user interfaces, including displaying order-flows of tokenized equities and yes-or-no betting markets of major global events. Although Coinbase has not officially verified any specific features before the event, it has on multiple occasions instructed users to tune into the livestream to get official information.
This growth follows the overall direction of Coinbase to become a multi-market trading platform, an everything app in digital assets, synthetic markets, and on-chain financial products. It also highlights the strategic change of the exchange to those regions with good growth momentum especially as the trading volumes in the cryptos continue to be uneven across the exchanges.
Read More: Coinbase Opens Trading for All Solana Tokens to 100 million Users in Major On-Chain Shift
Tokenized Equities Explode with Coinbase Entry
The tokenized financial asset market has been moving at a pace over the past few months. According to the data of numerous tracking services, tokenized volumes of equity transfers increased 32% over the past 30 days to reach $1.45 billion. This is increasing due to an increasing number of people globally being interested in blockchain-based versions of classic securities.
Fractional or full units of equities can be traded as per the cryptocurrencies by tokenized stocks, which are digital copies of the real world shares registered in a blockchain. They also provide longer trading slots, international availability and enhanced faster settlement.
In the few jurisdictions available outside the United States, Robinhood, Kraken, and a few offshore exchanges already offer tokenized U.S. equities or ETFs, although initial availability may be international. Coinbase entry is one of the biggest steps made by a large U.S. exchange into the industry, even though initial availability may be international.
The Momentum of Tokenized Assets
- 24/7 settlement: Blockchain infrastructure enables products of the equity type to trade 24/7.
- Fractional exposure: Fractional shares allow foreign retailers to be able to acquire high-priced stocks.
- Real-time liquidity: On-chain trading eliminates a plethora of market bottlenecks.
- Increasing institutional attention: Asset managers and fintech companies are investigating tokenized treasuries, funds and equities.
Crypto Exchanges Rush to Prediction Markets
In the last one year, prediction markets, the websites where individuals can buy and sell binary options on future events, have gained massive popularity. Traders have a chance to gamble on elections, sports, economic releases, corporate events and even on the results of entertainment.
The fact that Coinbase is contemplating the introduction of a native prediction market means it is competing directly with a number of players already present in the market:
- Gemini recently gained approval of CFTC regarding its Gemini Titan platform, which enables the U.S. customers to trade event contracts.
- This year Robinhood launched prediction products via Kalshi and got involved in an arrangement to purchase 90% of the regulated exchange LedgerX.
- Crypto.com collaborates with Trump Media and Technology Group to develop new prediction-market infrastructure.
- Kraken has been growing both in derivatives and token asset markets.
The entire prediction-market sector has now reached an estimated value of more than $10 billion due to the reduced regulatory tension and an increasing demand in the event-based trading products.
Most large operators, such as Coinbase, Robinhood, Kalshi, and Crypto.com, have recently joined a cross-industry alliance to reinforce compliance with prediction markets in the United States. The industry has taken off as a federal court has lifted a ban on election contracts that were long established, allowing more people to join the industry.
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