Coinbase considers entering prediction market
The company discussed this possibility on a recent quarterly conference call.
Key Points
- The company has examined its capacity, as well as the competition and is open to this option
- Coinbase has also done recent research to gain clarity on regulatory standards both in the US and the globe
Coinbase recently shared that entering the prediction market and listing stocks could be an option for the company.
Its CEO and Co-Founder Brian Armstrong discussed the possibility on a recent conference call.
“We’ve spent a lot of time investing in policy and getting regulatory clarity both in the US and a number of countries around the world,” Armstrong said when asked if the prediction market was a future option for the company. “That’s starting to bear fruit, which it’s great. It’s growing the TAM of crypto. It’s making it trusted and regulated.”
The executive also shared customer feedback regarding the prediction market and what that could mean for Coinbase.
He commented, “Now we’ve been heads down working on the next pieces of that because we think that every asset class is going to come onchain.
“And our customers are asking for this, too, prediction markets and tokenized stocks and every onchain asset you can imagine.”
However, the company has taken the growing field of competition into account.
“Even as more and more people come into the space, we’re able to power a lot of that with our infrastructure services,” Armstrong said. “But it does mean that lots of new competition is coming in. And so, we need to make sure we’re executing well. And we’ve talked since Q2 about this Everything Exchange vision.”
Good to know: Along with talk of prediction market entry, company leadership discussed Q3 financial and business results
Coinbase Chief Financial Officer Alesia Haas described Q3 as “a strong quarter for the company.”
“In the third quarter, our global spot market trading volume increased 29% and 38%, respectively,” Haas said. “Our institutional business had strong results across the board. Total institutional transaction revenue was $135m, up 122%. And the primary growth driver was derivatives.”
Total revenue in the third quarter reached $1.9bn. Net income totaled $433m in Q3, while adjusted net income was $421m.
The company reported an $801m adjusted EBITDA in the third quarter as well.
“It was another great quarter for Coinbase,” Armstrong said. “We continue to drive strong financial performance and build The Everything Exchange that we had announced last quarter. Financially, Coinbase’s core business is incredibly strong, and we’re very well positioned for the opportunities ahead of us.”
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