Charles Schwab Plans S&P 500 Prediction Markets Expansion

Financial services company Charles Schwab is preparing to enter the growing prediction markets industry with a new product tied to the S&P 500 index. The company is reportedly working with Cboe Global Markets to launch the offering within the next few months.

The new contracts will allow users to place simple yes-or-no wagers on whether the S&P 500 closes above or below a specific target price. Unlike platforms that offer betting on politics, sports, or entertainment events, Schwab’s product will focus only on stock market predictions linked to the major US index.

The move marks Charles Schwab’s first major step into the prediction markets sector, which has rapidly expanded over the past year.

Prediction Market Industry Continues Growing

Platforms such as Kalshi and Polymarket already provide event-based contracts connected to financial markets, elections, weather events, and sports. Several crypto companies are also moving into the sector as demand continues rising.

Coinbase has recently shown interest in prediction style products, while analysts estimate the overall prediction market industry could eventually reach $1 trillion in yearly trading volume by 2030.

Charles Schwab has also increased its focus on digital assets in recent months. In May, the company launched spot Bitcoin and Ether trading for retail customers as part of its broader crypto expansion strategy. The company reported net income of $2.5 billion during the first quarter of 2026.

Regulators Continue Watching Prediction Platforms

Despite the industry’s growth, prediction markets remain under pressure from regulators and lawmakers across the United States. Several state gaming authorities have questioned whether platforms offering sports-related contracts violate local gambling laws.

Meanwhile, the Commodity Futures Trading Commission under Chair Michael Selig has argued that prediction market event contracts qualify as swaps, giving the agency authority over regulation and enforcement matters.

Legal disputes involving Kalshi, Polymarket, state regulators, and federal agencies are still ongoing as lawmakers debate how the industry should be regulated in the future.