Charles Schwab Eyes S&P 500 Prediction Markets Launch in Partnership With Cboe

Global financial services giant Charles Schwab has emerged as the latest participant seeking to capture a share of the rapidly expanding prediction markets sector.

According to a recent report from The Wall Street Journal, financial heavyweight Charles Schwab is preparing to explore opportunities within the fast-growing prediction markets sector and may soon begin testing its presence in the industry.

The discount brokerage signaled its intentions earlier this year during its first-quarter earnings call, when CEO Rick Wurster indicated that prediction market offerings would likely be introduced. However, a clear distinction was drawn by Wurster between products tied to financial markets and platforms that enable betting on sports, political events, or entertainment outcomes.

According to the report, which cited individuals familiar with the plans, contracts linked to the performance of the S&P 500 are expected to be offered by Schwab through Cboe Global Markets, enabling participants to place wagers on the movement of the widely followed stock index that tracks many of the largest publicly listed companies.

The proposed markets would operate in a manner similar to the asset-price prediction products offered by platforms such as Kalshi and Polymarket, where participants are given a simple binary option to forecast whether an asset will close above or below a specified price level.

For instance, on Myriad, a platform operated by parent company Dastan, users are able to place predictions on whether Bitcoin will trade above the $62,000 level at a specified date and time.

The company is also expected to introduce a feature known as the “Plus Zone,” under which payouts will be determined by how closely the S&P 500’s closing level matches the target figure. Even when predictions are only partially accurate, a reduced payout could still be awarded to participants.

Charles Schwab Broadens Digital Asset Strategy and Market Offerings

According to the report, Charles Schwab’s prediction market products are expected to be launched over the next several months and could later be expanded to cover additional indexes and major financial benchmarks.

Last month, spot trading services for Bitcoin and Ethereum were introduced by Schwab to a select group of retail clients. The rollout came after a successful internal employee pilot, and access is expected to be gradually extended to a broader customer base over the coming months.

The company, which oversees approximately $11.8 trillion in client assets, has also expressed interest in participating in the expanding stablecoin market. In July of last year, Wurster indicated that stablecoin-related services were among the offerings the firm hopes to provide in the future.

Last month, spot trading for Bitcoin and Ethereum was introduced by Schwab to a group of retail clients. The rollout followed a successful internal employee pilot, and access is expected to be gradually expanded to a wider customer base over the coming months.