Coinbase (NASDAQ:COIN) is expected to enter the hot prediction markets. Currently exemplified by Kalshi and Polymarket, just this past week, Gemini Space Station (NASDAQ:GEMI) just received approval for a DCM license from the Commodity Futures Trading Commission (CFTC) to operate its own prediction marketplace.
While Coinbase has not made an official declaration, Bloomberg reported that the crypto exchange will go live with the prediction marketplace on December 17th, just around the corner. At the same time, Coinbase will launch tokenized securities, a sector of capital markets that is poised to change the world.
On December 16th, Robinhood (NASDAQ: HOOD) will present
Robinhood CEO has recently shared that prediction markets are the “fastest growing business we’ve ever had.”
Robinhood’s prediction market has reached over $100 million in annualized revenue in less than a year and is said to be on track for a $300 million run rate. Robinhood has partnered with Kalshi to offer the service but they are expected to acquire their own CFTC license to bring the service in house.
Analysts anticipate that prediction markets will grow from $407.63 billion in 2025 to $916.11 billion by 2033.
As competition heats up for the service, modern brokers and crypto exchanges are in a better position to capitalize on the opportunity. Old school online brokerages, which at one point were quite the innovation, have been slow to execute a strategy to serve the growing demand.
All US based crypto exchanges are moving into traditional securities, and other financial services offerings. Tokenization will inevitably be at the fulcrum of these changes.
Recently, Coinbase commented on tokenization changing the primary offering marketplace, mentioning specifically Reg A and Reg CF, tipping its hat that it too will provide access to capital via securities sales for private firms.
