Coinbase plans to launch an internal prediction market, with Kalshi potentially being the sole operator initially.

According to a report by CNBC citing sources familiar with the matter, cryptocurrency exchange Coinbase is preparing to launch an internal prediction market, powered by prediction platform Kalshi. This move is part of Coinbase's strategic plan to expand its asset class coverage amid concerns among some investors that digital assets are avoiding the market.

According to the source, Coinbase and Kalshi will officially announce their partnership soon, possibly as early as next week. The partnership is not exclusive, but Kalshi will be Coinbase's sole prediction market operator during the initial product launch.

According to The Information, Coinbase will release the product at its "Coinbase System Update" event on December 17. Bloomberg also mentioned that Coinbase will announce a tokenized stock product at the event.