Important points:
- Coinbase launches custom stablecoinallowing companies to issue branded stablecoins backed by assets like USDC.
- Coinbase partners with Kalsi Deploy a regulated prediction market directly within the Coinbase app.
- With these launches, Coinbase “Exchange anything” Spanning cryptocurrencies, payments, and on-chain financial products.
Coinbase is Accelerating the transition away from crypto-only exchanges. By launching a custom stablecoin and partnering with Kalsi to introduce prediction markets, the company is expanding into on-chain payments and real-world event trading under one unified platform.
Coinbase launches custom stablecoin for on-chain payments
Branded stablecoins as a source of new business
Coinbase has officially introduced custom stablecoincompanies will be able to issue their own branded stablecoins without having to build payment infrastructure from scratch. These tokens will be backed by flexible collateral such as USDC, while Coinbase will handle the complexity of issuance, compliance, and operations.
This product is designed for businesses that want more control over their payment flows, customer rewards, and financial operations. Businesses will be able to embed their brand into every transaction and enjoy the benefits of paying with stablecoins instead of using third-party stablecoins.
Early integrations with Flipcash, Solflare, and R2 are already being considered, demonstrating that solid wallet, fintech, and on-chain applications require differentiation.
Strategically, custom stablecoins make Coinbase more than just a trading site. The exchange will transform into a core payments and issue layer exchange that derives value from trading activity, not just trading volume.
Read more: Coinbase plans to shake up crypto with prediction market launch on December 17th
Everything we announced at Coinbase System Update was summarized in less than 2 minutes. pic.twitter.com/wnpRB5Rwkb
— Coinbase 🛡️ (@coinbase) December 18, 2025
Stablecoins move from infrastructure to products
Cross-border payments and on-chain payments have already been explored and confirmed to be valuable with the help of stablecoins. This step taken by Coinbase takes it a step further as it transforms stablecoins into customizable financial products specific to its ecosystem and user base.
This is consistent with Coinbase’s overall developer strategy. The company is developing a full-stack stablecoin platform with a payments API and custody product. It can be used for everything, consumer apps, and enterprise-scale payment systems.
Coinbase partners with Kalshi to launch prediction market
Regulated event trading comes to Coinbase
Additionally, Coinbase is working with Kalsi to introduce a regulated prediction market to US users in collaboration with custom stablecoins. This integration allows users to trade the results of real-world events such as elections, economic indicators, sporting activities, and cultural events.
At launch, all prediction market contracts and liquidity will be obtained through Karsi, a US-based market operator. Coinbase users can trade these contracts for as little as $1 USD or USDC within the core app.
Coinbase integrates prediction markets into its central interface, eliminating the roughness that has historically been a limiting factor for adoption. Users can manage their forecast positions, cryptocurrencies, stocks, and cash balances all in one accessible place.
Why prediction markets fit into Coinbase’s strategy
The benefits of prediction markets go beyond speculative gains. This is possible because they signal a group’s opinions in real time and tend to react more quickly than traditional media or opinion polls.
For Coinbase, the partnership with Kalshi will provide a new asset category that is not directly related to cryptocurrency price movements. This fosters diversification of interests and ensures users remain engaged even when cryptocurrency volatility declines.
Coinbase has indicated that Kalshi is the first partner and that more prediction market platforms will be supported in the future. This signifies a larger vision of becoming the central distribution point for event-based markets.
Read more: Coinbase move to reinstate staking after 2023 ban causes California crypto users to miss out on $110 million
Coinbase’s Everything Exchange Vision
Connecting stablecoins, markets, and on-chain activity
Prediction markets and custom stablecoins are a transition to broader platforms. Coinbase creates a platform where payments, trading, and on-chain applications are integrated with each other.
The payment layer consists of stablecoins. Prediction markets provide real-world outcome trading. The combination of the two reaffirms Coinbase’s position as an always-on financial platform rather than a single-asset exchange.
This also suits Coinbase as it moves towards tokenization and on-chain financial infrastructure in the long term. Event markets and stablecoins are part of the building block solution for building more assets and financial contracts on-chain.
For businesses, custom stablecoins offer the opportunity to control the payments experience and use Coinbase’s regulated infrastructure. Our partnership with Kalsi demonstrates that developers can integrate real-world data and events with crypto-native financial products.
