Test

Momentum

View

Charles Schwab plans to enter the <a href="https://yellow.com/learn/what-are-prediction-markets-crypto-how-they-work" rel="noopener noreferrer nofollow">prediction markets</a> business with yes-or-no options contracts tied to the S&amp;P 500, partnering with Cboe Global Markets.
<h2 id="key-points">Key Points:</h2>
<blockquote>
 <ul>
 <li>Schwab will offer binary options letting clients bet on whether the S&amp;P 500 finishes above or below a set level.</li>
 <li>The product arrives in the coming months and differs from the futures-style contracts on Kalshi and Polymarket.</li>
 <li>The brokerage holds $11.8 trillion in customer assets and recently added spot Bitcoin and Ether trading.</li>
 </ul>
</blockquote>
<h2 id="schwab-eyes-sp-500-bets">Schwab Eyes S&amp;P 500 Bets</h2>
News of the plan <a href="https://cryptobriefing.com/charles-schwab-plans-sp-500-prediction-markets-with-cboe/" rel="noopener noreferrer nofollow">broke</a> on Jun. 19, with people familiar pointing to a launch within months through Cboe. The contracts would pay a fixed cash amount if the S&amp;P 500 closes above or below a target price, and nothing otherwise. The shift marks the brokerage's first step into prediction markets, a field already pulling in exchanges, fintech apps and crypto-native platforms.
That all-or-nothing setup separates the product from Kalshi and Polymarket, which <a href="https://crypto.news/charles-schwab-challenges-kalshi-with-new-sp-500-prediction-market/" rel="noopener noreferrer nofollow">run</a> futures-style event contracts across a sprawl of outcomes. Schwab is also weighing a Plus Zone feature, paying a smaller multiple to traders who land close but miss the exact mark. The two firms have discussed extending the lineup to other indexes and benchmarks over time.
Also Read:<a href="https://yellow.com/news/xrp-leverage-test-etf-demand-selloff" rel="noopener noreferrer nofollow">XRP Faces Leverage Test As $1.44B ETF Demand Meets Sell-Off</a>
<h2 id="wurster-frames-schwab-approach">Wurster Frames Schwab Approach</h2>
CEO Rick Wurster<a href="https://decrypt.co/371708/charles-schwab-planning-sp-500-prediction-markets-cboe" rel="noopener noreferrer nofollow">flagged</a> the shift earlier this year, telling analysts the firm would likely add prediction markets because clients want derivatives and portfolios in one place. He drew a hard line against sports, politics and entertainment wagers. When we do, we will stay away from gambling, Wurster said.
Momentum favors the firm, which logged a record 9.9 million daily average trades in the first quarter, underscoring how heavily retail traders have leaned on the platform.
The move also deepens a wider digital build-out.
In May, the firm <a href="https://www.gncrypto.news/news/schwab-sp-500-prediction-markets-cboe/" rel="noopener noreferrer nofollow">opened</a> spot Bitcoin<a href="https://yellow.com/asset/btc" rel="noopener noreferrer nofollow">(BTC)</a> and Ether<a href="https://yellow.com/asset/eth" rel="noopener noreferrer nofollow">(ETH)</a> trading to a portion of retail clients, while its shares slipped nearly 3% on Thursday to near $91.70 before the Juneteenth break.
Rivals already crowd the field. Coinbase and Robinhood have <a href="https://cryptoadventure.com/charles-schwab-joins-prediction-market-race-with-cboe-sp-500-bets/" rel="noopener noreferrer nofollow">tied</a> prediction tools to their retail apps, while CME Group and Interactive Brokers field similar event-based products. Some forecasts put the sector near $1 trillion in annual volume by 2030.
Scrutiny still hangs over the space. The Commodity Futures Trading Commission, led by Chair Mike Selig, treats event contracts as swaps under its jurisdiction, while state regulators and members of Congress <a href="https://finance.yahoo.com/markets/crypto/articles/charles-schwab-weighs-prediction-markets-172622437.html" rel="noopener noreferrer nofollow">push</a> for tighter rules. Several disputes tied to the leading platforms remain unresolved in the courts, leaving the rules in flux.
Read Next:<a href="https://yellow.com/news/trump-eases-anthropic-threat-view-g7" rel="noopener noreferrer nofollow">Why Did Trump Ease His Anthropic Threat View After G7?</a>

Schwab Enters Prediction Markets With Yes-Or-No S&P 500 Wagers

Table of Contents

Yellow News

Other articles published on Jun 20, 2026

Join our free newsletter for daily crypto updates!