Coinbase Brings Regulated Prediction Markets to All 50 U.S. States
Coinbase officially expanded its prediction markets feature nationwide on January 28, 2026, making it available to users across all 50 U.S. states.
The rollout is powered by a partnership with Kalshi, a federally regulated event trading platform overseen by the Commodity Futures Trading Commission.
The integration allows Coinbase users to trade simple “yes-or-no” contracts on real-world events directly within the main Coinbase app, marking a significant expansion beyond traditional crypto spot trading.
How the Prediction Markets Work
The new feature enables users to speculate on the outcomes of events across a wide range of categories, including politics, sports, economics, entertainment, and broader cultural trends. Each contract settles based on a clearly defined outcome, with users either receiving a fixed payout or losing their stake depending on the result.
Participation is designed to be accessible. Trades can be initiated with as little as $1, funded using either U.S. dollars or the USDC stablecoin. Once opened, positions appear alongside existing crypto, stock, and cash balances, keeping all activity within a single interface rather than requiring a separate platform.
Crucially, the regulatory structure differs from traditional betting models. Because Kalshi operates as a Designated Contract Market under federal derivatives law, these contracts fall under CFTC oversight rather than state gambling regulations, allowing Coinbase to offer the product nationwide.
A Strategic Shift Beyond Crypto Trading
The nationwide expansion fits into Coinbase’s broader ambition to become what executives have described as an “everything exchange.” Rather than focusing solely on cryptocurrencies, the platform is increasingly positioning itself as a hub for multiple financial instruments, from spot crypto and staking to tokenized assets and now event-based markets.
Industry analysts estimate that the global prediction market sector could grow to $37 billion by late 2025, driven by rising institutional interest in event-linked financial products. By embedding prediction markets directly into its core app, Coinbase is aiming to capture retail participation while leveraging regulated infrastructure.
To support the system, Coinbase Custody is used to safeguard the USDC reserves backing Kalshi’s contracts, tying the new product into Coinbase’s existing compliance and custody framework.
Timing and Near-Term Catalysts
The full U.S. rollout arrives ahead of several high-profile events in early 2026, including the NFL Super Bowl, which is expected to generate heightened activity across sports-related contracts. This timing suggests Coinbase is positioning the feature to benefit from predictable spikes in public interest and trading volume.
While prediction markets remain a niche compared to traditional trading, the move signals Coinbase’s intent to broaden its revenue streams and user engagement. If adoption scales as expected, event-based trading could become a meaningful addition to the platform’s expanding suite of regulated financial products.
The post Coinbase Brings Regulated Prediction Markets to All 50 U.S. States appeared first on ETHNews.
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