Coinbase Global (NASDAQ:COIN) recently rolled out its prediction markets in all 50 U.S. states, partnering with Kalshi to offer markets on cryptocurrency prices, politics, sports and more.
The head of Coinbase’s prediction markets shares the reasons why this was a key move for the cryptocurrency platform company.
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Why Prediction Markets for Coinbase
Adding prediction markets for Coinbase customers is part of the company’s push to reach more customers and offer more tools for existing and new customers.
“We’re not only a leader in the crypto space, but the strategy of the business now is really to become the everything exchange,” Coinbase Head of Prediction Markets Toni Gemayel told Benzinga.
Gemayel highlighted that Coinbase announced new support coming for items like equities, commodities and prediction markets towards the end of 2025.
“The reason why [prediction markets] fits particularly well with crypto is you know you’re seeing the price of Bitcoin right now take a big dip and traders want to know, traders want to have confidence in of which direction it’s going and so you could go check a prediction market right now.”
The Coinbase head of prediction markets said checking the markets for pricing on Bitcoin (CRYPTO: BTC) could determine whether some investors buy the dip.
“Markets forecast information, or an odds score associated to the price of crypto assets.”
Asked about Coinbase’s prediction markets being a tool to land new customers or as a customer retention tool, Gemayel argues that it’s neither.
“I think that we intend to expand the category. If you think about the everything exchange, there’s maybe no better asset class than prediction markets, which are markets on everything.”
Early Success for Coinbase
Launched in January, Coinbase’s prediction markets have proven to be popular with users. Gemayel said sports, politics and crypto markets have proven to be the most popular in the early days on the platform.
Gemayel cautions that since the markets are still new, it’s important to not over index the data.
“Politics, it’s an election year. The midterms are looking like they’re going to be extremely interesting,” Gemayel said.
Gemayel said strong interest in sports, politics and crypto markets fits the company’s user base.
Asked about rules and regulations on prediction markets, Gemayel points out that Coinbase employees and executives are not able to bet on Coinbase prediction markets, outside of testing products.
“Coinbase has a track record of doing right by the customer, making sure that things are very transparent.”
Gemayel’s Prediction Market History
Now at Coinbase, Gemayel has been involved in prediction markets for years, previously working for both Kalshi and Polymarket. Gemayel founded The Clearing Company, which was acquired by Coinbase in December.
“I’ve been in prediction markets since before they were cool,” Gemayel told Benzinga.
The Clearing Company was created with the belief that the prediction market space was “going to increase dramatically.”
“I maybe underpredicted how big it would get. It exceeded even my wildest expectations,” Gemayel said.
Photo: David Esser via Shutterstock
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