Coinbase, the largest cryptocurrency exchange by assets, launched prediction markets across all 50 U.S. states in partnership with Kalshi, offering users the ability to trade on outcomes of real-world events in sports, politics, and culture, the company announced on X.
Brian Armstrong, CEO of Coinbase, highlighted the potential of prediction markets as essential tools for truth-seeking.
He stated, “When there’s skin in the game, the output is far more reliable. Everything else is biased by someone's agenda. I think we’ll look back at prediction markets as a breakthrough in how we discover truth in the world.”
These markets allow users to trade on the predicted outcomes of various events, with prices determined by market participants.
The collaboration with Kalshi, a platform regulated by the Commodity Futures Trading Commission (CFTC), ensures that these markets are compliant with federal regulations.
Coinbase's expansion into prediction markets aligns with its strategy to become an "everything exchange," integrating services beyond crypto trading. This aligns with a broader trend in the U.S., where prediction markets have gained traction following the 2018 Supreme Court decision on sports betting, becoming tools for both speculation and truth discovery.
By venturing into prediction markets, Coinbase not only diversifies its service offerings but also cements its role as a leader in integrating innovative financial products. This move could potentially encourage further adoption of prediction markets within mainstream financial systems, offering users new ways to engage with economic predictions and forecasts.
This article was generated with the assistance of AI workflows.
