Coinbase launched its prediction market product. The product is available to customers in all 50 U.S. states.
Coinbase offers the feature through a partnership with Kalshi. Kalshi is regulated by the Commodity Futures Trading Commission (CFTC).
Users access the functionality via a "Predict" tab in the latest Coinbase app version. Users can wager on outcomes in sports, politics, entertainment, and economics.
Sports is the largest category by volume on similar platforms. Crypto and politics follow sports.
On-chain analysis indicates high-conviction crypto trading on prediction markets declined since early January. This suggests a broader reduction in risk appetite among crypto traders. This reduction could influence the initial uptake of crypto-focused predictions.