Coinbase is aggressively pushing into the prediction markets sector, framing the product as a central pillar of its 2026 growth strategy.
During the company’s Q4 earnings call, executives described a future where Coinbase serves as an “Everything Exchange,” offering crypto, equities, commodities, and derivatives in one unified app. CEO Brian Armstrong confirmed that the rollout is already in full swing:
“A few weeks ago, we rolled out prediction markets to 100% of our customers. Soon we’ll add more markets and a dedicated sports hub for prediction markets.”
Legal Friction in Nevada and Beyond
While the product has seen early traction, particularly around Super Bowl weekend, it has triggered a wave of litigation from state regulators.
The Nevada Gaming Control Board (NGCB) has been especially active, filing enforcement actions and claiming the contracts constitute “unlicensed wagering”. Coinbase has retaliated with lawsuits in Illinois, Michigan, and Connecticut, seeking a ruling that these markets fall under federal CFTC jurisdiction rather than state gambling laws.
Marketing to the Masses
Coinbase used the Super Bowl to capture national attention with a polarizing “karaoke-style” advertisement. Defending the creative choice on X, Armstrong noted that the goal was to “break through” the noise of the event:
“Why did you buy a Super Bowl ad for karaoke? This is why. It broke through and got people’s attention… Only then have you bought the right to get them interested in the next step: crypto.”
The company reported $1.8 billion in total revenue for Q4 2025, supported by a strong balance sheet of $11.3 billion in cash. As the litigation continues, Coinbase remains committed to its diversification strategy, using prediction markets to attract traditional investors and smooth out the volatility inherent in spot crypto trading.
