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- Coinbase reveals prediction markets and tokenized equities on December 17.
- The company controls tokenized equities launch without external partners involved.
- Rapid growth in prediction markets could drive competition for Coinbase.
Coinbase is set to announce two major product launches next week: prediction markets and tokenized equities. The report by Bloomberg says that the exchange will present these innovations on December 17. The equities product tokenized will be in-house without other partners, implying that Coinbase is keeping full control of its development. The company has not confirmed this as such, but one of the Coinbase spokespersons gave the news a tease in a livestream, which further heightened the expectation.
This step is the future venture of Coinbase into the prediction market industry, which is now shared by Kalshi and Polymarket. The level of trading in these platforms has expanded at a very high rate, and the amount of trading has been rising to 1.3 billion in August and 7.7 billion in November. The entry by Coinbase would introduce new competition as well as provide users with more options. The prediction market has been on the rise, and the entry of Coinbase will disrupt the existing duopoly.
Also Read: Spanish Influencer Álvaro Romillo Jailed Over Alleged $300 Million Ponzi Scheme.
Expanding into New Markets
Besides prediction markets, Coinbase is also introducing tokenized equities. This new product will enable users to trade conventional financial assets using blockchain technology. The relocation is consistent with the rest of the industry that is launching tokenized traditional holdings as a means to offer more accessible financial products. The strategy of Coinbase may contribute to the redesign of the interaction of users both within the digital and traditional financial markets.
Other crypto exchanges are also venturing into the space with the same offer. This week, Gemini was given authorization by the Commodity Futures Trading Commission as an event contracts platform. Crypto.com also collaborated with Fanatics to create a prediction market that is fan-driven. All these attempts signify that the major exchanges are moving in the direction of diversification in their product lines.
Despite the decrease in the Coinbase stock by 2.2 percent, and the stock closing at 269.02 on Thursday, the market will be keen on the performance of the new products being introduced by the company. The success of the future product releases might define the chances of Coinbase to become a leader in an extremely dynamic and competitive digital asset environment.
Also Read: Argentina Considers Allowing Banks to Trade Digital Assets and Offer Crypto Services
