Coinbase is set to launch a prediction market powered by Kalshi, aiming to expand asset classes on the exchange amid investor caution towards digital assets. Rumors of the launch have circulated for weeks, with reports suggesting an announcement next week. The move aligns with Coinbase’s goal to become an “everything exchange.”

Competing with Robinhood, Gemini, and Kraken, Coinbase’s expansion into prediction markets and tokenized stocks comes as digital asset sentiment wanes. Recent liquidations and market pullbacks have prompted investors to shift towards traditional safe-haven assets like gold. Bitcoin, currently trading at $89,951, has fallen 23% in the past three months.

The collaboration between Coinbase and Kalshi highlights the latter’s strategy to embed event contracts into various brokerages, expanding its reach in a competitive prediction markets space. Kalshi previously partnered with Robinhood and is in discussions with other major brokerages to secure similar deals. The move underscores the growing trend of prediction markets in the financial industry.

Read more at CNBC: Coinbase to soon unveil prediction markets powered by Kalshi, source says