Coinbase to Launch Prediction Markets and Tokenized Stocks Next Week: A Game-Changer for Crypto Traders

Coinbase is about to tear down another wall. Next week, the exchange giant rolls out prediction markets and tokenized stocks—directly challenging traditional finance's monopoly on speculation and equity access.

Betting on Everything, Owning Anything

Forget sports or politics. These new prediction markets let users wager on corporate earnings, tech product launches, even climate data. It's decentralized foresight, powered by crypto's global, 24/7 ledger. Meanwhile, tokenized stocks promise fractional ownership of giants like Tesla or Apple without a brokerage account—just a crypto wallet.

Why This Cuts Deep

This isn't just another product launch. It's a structural attack. Prediction markets bypass pollsters and pundits, creating a liquid truth machine. Tokenized stocks bypass custodians, settlement systems, and their associated fees and delays. Both moves leverage blockchain's core superpowers: transparency and disintermediation. It's a classic crypto play—find a bloated, inefficient system and build a leaner alternative on-chain.

The Regulatory Tightrope

Launching these features is a bold regulatory gambit. Prediction markets skirt close to gambling laws, while tokenized securities have long been a third rail for regulators like the SEC. Coinbase's move suggests either unprecedented clarity from watchdogs or a calculated risk to force the issue. Either way, it accelerates the convergence of crypto and mainstream finance—whether traditional finance is ready or not.

Another step toward making Wall Street's middlemen look like expensive, slow relics. The future of finance isn't just digital; it's programmable, permissionless, and profoundly disruptive.

Why this matters now

The simultaneous launch of these products comes at a time of heightened demand for both innovations. Tokenized equity trading has seen strong growth this year, with the monthly transfer volume of blockchain‑linked stocks rising sharply as investor interest broadens. 

This trend highlights a shift among digital asset traders seeking assets that blend characteristics of traditional markets with advantages of blockchain technology, such as extended trading hours and lower settlement friction.

At the same time, interest in prediction markets has surged across the crypto sector. Other platforms, including Gemini’s affiliate, recently secured regulatory approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate regulated prediction markets, signaling increasing regulatory acceptance of event‑based trading models. 

Background and industry competition

Coinbase’s MOVE follows broader industry momentum. Exchanges like Kraken, Robinhood, and Crypto.com have also been exploring or rolling out similar offerings. 

For example, Kraken has already expanded into tokenized equity trading for non‑U.S. users, and Robinhood earlier introduced elements of prediction products in partnership with Susquehanna.

These developments reflect a larger trend in crypto and finance. In line with the trend, Coinbase has also shared that it aims to become an “everything app” with an ecosystem that provides a wider suite of services, from traditional crypto trading to derivatives, equities, and now prediction markets. 

Coinbase’s expansion also speaks to strategic responses to flat or volatile crypto markets, as firms seek new revenue streams and user engagement opportunities through innovative financial products. 

Risks and considerations

Although there is increasingly popular interest, prediction markets have attracted criticism regarding their similarity to wagering, and tokenized stocks have to deal with the regulatory issues as they tend to deal with securities laws.

Industry observers note that broader adoption will depend on how clearly exchanges comply with U.S. regulatory frameworks while balancing innovation with investor protection. 

Reuters

As Coinbase prepares for its December 17 announcement, traders and investors alike are watching closely. If executed successfully, these new features could reshape how digital platforms bridge mainstream finance with blockchain‑based trading.

Also Read: Prediction Markets Sparks Debate Over Gambling and Insider Trading