TechFlow News, June 20: According to a report by The Wall Street Journal cited by Cointelegraph, financial services giant Charles Schwab plans to enter the prediction markets business, offering clients betting products tied to the performance of the S&P 500 Index—allowing users to place “yes or no” bets on whether the S&P 500 stock index will meet specific performance criteria. This initiative, part of a collaboration with Cboe Global Markets, is expected to launch within months, marking Schwab’s first foray into prediction markets.
The report notes that unlike prediction market platforms such as Kalshi and Polymarket—which offer contracts covering a broad range of events including politics, sports, weather, and corporate developments—Schwab’s product reportedly features only “yes or no” bets on whether the S&P 500 will close above or below a specified target price.
In May this year, Schwab announced the launch of spot trading for Bitcoin and Ethereum for retail clients, further expanding its digital asset services. The company reported first-quarter 2026 net income of $2.5 billion.
Although prediction markets continue to grow, platforms like Kalshi and Polymarket remain under scrutiny from U.S. members of Congress and multiple state-level regulatory authorities. Under Chairman Michael Selig, the U.S. Commodity Futures Trading Commission (CFTC) has determined that event contracts traded on prediction markets constitute “swaps,” over which the CFTC holds exclusive regulatory and enforcement authority.
