Coinbase’s Strategic Expansion: Bridging Crypto, Stocks, and Prediction Markets in the AI Era

On December 18, 2025, Coinbase, a leading cryptocurrency exchange, announced a transformative platform upgrade that significantly broadens its market scope. In a strategic partnership with prediction market platform Kalshi, Coinbase is introducing stock trading and prediction markets to its ecosystem. This expansion comes at a pivotal moment, coinciding with a speculative frenzy in India's AI sector, where some stocks have seen astronomical surges of up to 55,000%, sparking widespread discussions about a potential market bubble. CEO Brian Armstrong framed this update as a foundational step toward creating a unified, all-encompassing trading experience. His vision is for a single platform where 'every major asset' can coexist and be traded seamlessly. This includes the full spectrum from traditional cryptocurrencies to the emerging field of tokenized equities. The move represents a bold diversification beyond Coinbase's core crypto business, aiming to capture a larger share of the global retail and institutional trading landscape. This strategic pivot is not merely an addition of new asset classes; it is a response to evolving investor behavior and market convergence. The integration of prediction markets, in particular, allows users to speculate on real-world events, blending traditional finance with novel, event-driven trading. By offering advanced tools alongside these new markets, Coinbase is positioning itself as a comprehensive hub for modern investors who navigate between crypto volatility, equity growth stories—especially in hyped sectors like AI—and speculative event contracts. This expansion underscores the blurring lines between asset classes and highlights Coinbase's ambition to be at the center of the future of digital finance, even as it navigates the regulatory and market risks associated with such rapid diversification.

Coinbase Expands into Stocks and Prediction Markets Amid AI Stock Frenzy

Coinbase unveiled a sweeping platform upgrade, introducing stock trading, advanced tools, and prediction markets through a partnership with Kalshi. The MOVE comes as India's AI sector sees a speculative 55,000% stock surge, raising bubble concerns.

CEO Brian Armstrong positioned the update as foundational for a unified trading experience where 'every major asset' coexists—from crypto to tokenized equities. The announcement follows competitors like DraftKings and Polymarket rushing into prediction markets.

Separately, Coinbase confirmed ongoing development of on-chain products for institutional clients, signaling a push beyond retail crypto trading.

Coinbase Expands Beyond Crypto With Stock Trading, Prediction Markets

Coinbase is aggressively diversifying its platform beyond digital assets, announcing stock trading and prediction markets during its 'System Upgrade' event. The exchange now partners with Kalshi to offer event-based betting, while its stock trading feature positions it against traditional retail investment platforms.

CEO Brian Armstrong framed the move as foundational for an 'everything app' strategy: 'Coinbase is now the best place to trade every asset, not just crypto.' The platform simultaneously revealed plans for asset tokenization, suggesting eventual on-chain equity trading.

This expansion occurs amid growing institutional interest in tokenized real-world assets (RWAs), with competitors like Binance and FTX also exploring traditional market integrations. Coinbase's stock trading is currently limited to U.S. users.