Coinbase Launches Prediction Markets Across All 50 US States

Coinbase expands regulated prediction markets nationwide through Kalshi partnership, enabling US users to trade real-world outcomes with compliant access.

Coinbase has launched prediction markets for users across all 50 US states. The rollout was confirmed in a Wednesday X post. The move is a major expansion of regulated event-based trading. It comes after previous testing in the region and indicates larger ambitions.

Coinbase Completes Nationwide Prediction Market Rollout

The prediction markets are offered via a partnership with Kalshi. Kalshi is a platform that the US Commodity Futures Trading Commission regulates. Therefore, the collaboration enables Coinbase to provide nationwide compliant access. This structure deals with long-standing regulatory issues.

Previously, the product was restricted to select regions of the US. However, the new rollout offers uniform access within the country as a whole. Users can now trade on actual real-world outcomes. These outcomes encompass sports, politics, culture, and macroeconomic indicators.

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Coinbase stated that users can trade on “any real-world outcomes” that are available on the platform. This announcement also followed plans shared in December. At the time, Coinbase announced plans for onchain prediction markets. Kalshi received the name of the sole partner.

Prediction markets employ a set of event contracts to represent outcomes. Each contract is a probability based on user participation. As more traders get in position, the prices adjust dynamically. This mechanism enables markets to sum up the public expectations.

Kalshi and websites like it have experienced rapid growth in the past few years. They came to attention during major political and sporting events. Users gamble on contracts related to elections, interest rates, and championships. The strategy combines both forecasting and financial incentives.

The nationwide launch is in advance of giant US sporting events. Notably, the Super Bowl is one of the biggest traded prediction events each year.

Regulation, Funding, and Market Growth Outlook

Regulatory compliance is still the key to the product’s design. Kalshi’s CFTC oversight is one framework that establishes a law. This is a reduction of uncertainty as compared to offshore prediction platforms. Consequently, Coinbase is able to bring the service into its regulated ecosystem.

Funding requirements are intentionally minimal. Users can open positions with as little as $1. Payment may be made out of cash balances. Or, users can use USDC stored in Coinbase accounts for funding trades.

This low threshold for entry is with the intention of attracting retail participation. Ease of access is still a priority for Coinbase. However, users have to abide by normal account verification. This ensures alignment with compliance standards for existing

Market analysts see great room for growth in prediction markets. Some estimates put the sector at $37 billion by 2025. Increased regulatory clarity has aided such forecasts. Large exchanges coming into the space further validates the model.

Coinbase entry may bring a boom of mainstream adoption. There are millions of US users of the exchange. Bringing prediction markets into its system reduces the barriers substantially. Therefore, competition among sectors is expected to increase.

Despite optimism over growth, there are risks. Prediction markets require an accurate resolution of the events. Disputes or unclear results may pose challenges. However, regulated platforms usually publish detailed rules of settlement.

Overall, the launch nationwide is a strategic milestone. It adds Coinbase’s product range beyond the area of spot trading. It also places the exchange in an emerging forecasting market. As such, prediction markets could be a central crypto-adjacent offering.

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