S&P 500 · Wall Street · Polymarket · Decrypt
Charles Schwab Planning to Roll Out S&P 500 Prediction Markets With Cboe: WSJ
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Global financial giant Charles Schwab is gearing up to test its hand at the burgeoning prediction markets industry, according to a new report from the Wall Street Journal.
Key facts
- Shares of SCHW finished down nearly 3% on Thursday, changing hands around $91.70
- For example, on Myriad—a product of Decrypt’s parent company, Dastan—predictors can wager on whether or not Bitcoin will be above $62,000 at a particular day and time
- The firm, which has $11.8 trillion in total customer assets, also showed some interest in joining the growing stablecoin opportunity, with Wurster saying last July that it’s “something they do want to be able to offer
- The firm 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, paying out a discounted multiple even if they are “mostly right
Summary
Charles Schwab is reportedly entering the prediction market space in collaboration with Cboe Global Markets. The firm had previously telegraphed it may look to add prediction markets, but not for sports or entertainment. Markets will instead focus on S&P 500 performance to start, and are expected to roll out in the coming months. The discount brokerage tipped its hand earlier this year during its first quarter earnings call, with CEO Rick Wurster saying it would “likely have prediction markets.” But Wurster drew a distinction between financial market offerings and those that allow users to wager on sports, politics, and entertainment.