Coinbase Launches Prediction Markets Powered by Kalshi
Coinbase rolled out its prediction market product on Wednesday, partnering with Kalshi to fuel its initial offerings, which are now available to users in all 50 U.S. states.
The markets include sports, crypto, elections, plus nine other categories, and can be found in Coinbase’s new “Predict” section within its app.
The launch makes Coinbase the newest entrant into the prediction market space. Meanwhile, it’s Kalshi’s latest push into the crypto industry as it continues its expansion of crypto products and exposure to crypto traders.
Coinbase CEO Brian Armstrong referred to prediction markets as the “ultimate form of truth seeking.”
Prediction markets are the ultimate form of truth seeking. 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.… https://t.co/TJQPiHBP5g
— Brian Armstrong (@brian_armstrong) January 28, 2026
Multi-billion dollar prediction market raises
In December 2025, Kalshi announced a $1 billion raise with an $11 billion valuation. Crypto prediction market platform Polymarket was worth between $12 billion and $15 billion as of January 2026.
Other prediction market startups have made remarkable raises. The Clearing Company, an on-chain prediction market, raised $15 million in August 2025. Limitless announced a $10 million funding round in October.
These valuations reflect the new financial instruments available on most events. Institutional traders can hedge against events directly and use contract prices for forecasting. Even President Trump has entwined himself with Crypto.com on Truth Social.
State gaming regulators’ hostility to sports contracts has not dampened investors’ optimism.
Kalshi’s ongoing legal challenges
Massachusetts delivered Kalshi’s latest legal setback after a state judge ruled against the exchange in January. Negotiations with the state over the terms of the preliminary injunction are ongoing. Meanwhile, Kalshi is appealing its early loss.
The industry is still waiting for the Third Circuit opinion, which is the most favorable appeals court case for Kalshi. Questions surrounding sports contracts are likely bound for the Supreme Court. As the court cases unfold, the prediction market industry is gaining as much ground as it can before stronger guardrails are placed on it.