Coinbase, a leading cryptocurrency exchange, has announced its intention to expand far beyond its traditional stock in trade, crypto, and move into the “everything exchange” sector, which encompasses real-world assets, stocks, early-stage token sales, derivatives, and prediction markets.
Coinbase Outlines Shift in Strategy and Why It Is Necessary
Coinbase is now preparing for a “gradual international rollout based on jurisdiction approvals,” as indicated by company VP of product, Max Branzburg, who spoke to CNBC and confirmed that a potential shift in business will come gradually and as the necessary licenses are obtained.
Branzburg called the new project an “exchange for everything,” making it a one-stop shop for all your prediction and market needs.
“Everything you want to trade, in a one-stop shop, on-chain. … We’re bringing all assets onchain — stocks, prediction markets, and more. We’re building the foundations for a faster, more accessible, more global economy,” Branzburg said.
This paradigm shift is aligned with the broader context in the United States and beyond. Kalshi, a prediction market platform that has taken the worlds of entertainment and sports by storm, has been particularly successful in ensuring that it brings a different type of product that is as competitive as traditional sports and often more worthwhile in purely financial terms.
Yet, Coinbase is following the example of other tech-driven financial brokers, such as Robinhood, which has also been pushing into various markets and verticals, hoping to rapidly establish itself in these new businesses.
Other companies have followed suit, including Gemini and Kraken, and are hoping to expand their financial clout. Coinbase’s flirtation with prediction markets is not entirely new. Even in February, company CEO Brian Armstrong insisted that prediction markets are a “better source of truth.”