Key facts
- Charles Schwab is partnering with Cboe Global Markets to launch prediction markets.
- The new contracts will focus on the S&P 500 index's performance.
- Customers can place 'yes-or-no' wagers on the index's closing price.
- The offering includes options for partial payouts based on directional correctness.
- The first contract will be a Mini S&P 500 Index prediction market.
Global financial giant Charles Schwab is preparing to enter the prediction markets industry in collaboration with Cboe Global Markets. The firm, which manages $12 trillion in customer assets, will offer contracts allowing users to make predictions on the S&P 500's performance. These contracts will feature a binary choice regarding whether an asset will finish higher or lower than a specified price, with a 'Plus Zone' feature providing partial payouts for directionally correct but not exact predictions. The first product to utilize Cboe's framework will be a Mini S&P 500 Index prediction market contract, with a planned launch in the second quarter of 2026. This move follows Schwab's recent expansion into spot trading for Bitcoin and Ethereum.