In short
- Charles Schwab is reportedly entering the forecast market in partnership with Cboe Global Markets.
- The company previously wrote the telegraph appears to be adding to the prediction markets, but not sports or entertainment.
- Markets will focus on the performance of the S&P 500 to begin with, and is expected to expand in the coming months.
The world’s leading financial expert Charles Schwab is planning to try his hand at the growing prediction markets, according to a A new report from Wall Street Journal.
Discounting the lease earlier this year at the time of the initial investment, is CEO Rick Wurster saying that “it can have predictive markets.” But Wurster made a distinction between financial market offerings and those that allow users to bet on sports, politics, and entertainment.
According to the report, which cites people familiar with the matter, Schwab will offer contracts through Cboe Global Markets that allow people to invest in the performance of the S&P 500, a well-known equity index that tracks a basket of the largest publicly traded companies.
The markets will act in the same way as the price markets provided by the prediction markets like Kalshi and Polymarket, in which the predictions are made for binary options if the stock will finish higher or lower than the given price.
For example, on the Myriad-product of Decrypt’s parent company, Dastan-predictors can hide whether or not Bitcoin will be over $62,000 on a certain day and time.
The company is also expected to offer a feature called the “Plus Zone,” which pays people based on how close the S&P 500 closes to the market number, and pays a discount even if they are “very accurate.”
Charles Schwab’s markets should be established in the coming months and may eventually be offered against other indexes or key financial benchmarks, according to the report.
Last month, Schwab expanded its customer offeringsto initiate real estate transactions for Bitcoin and Ethereum to a group of its retail users. The launch followed a successful pilot, with a gradual rollout to more customers expected over the next few months.
The company, which has $11.8 trillion in total customer assets, has also expressed interest in joining the growing stablecoin opportunity, with Wurster saying last July that “it’s something we want to be able to offer.”
Shares of SCHW ended up about 3% on Thursday, changing hands at around $91.70. US markets are closed on Friday for the June 10 holiday.
Daily Debrief A letter
Start each day with top stories right here, including originals, podcasts, videos and more.
