Charles Schwab plans to partner with Cboe to launch the S&P 500 prediction market

Deep Tide TechFlow News, June 20, According to Decrypt, citing the latest report from The Wall Street Journal, the global financial giant Charles Schwab is preparing to enter the prediction market sector, collaborating with Cboe Global Markets to launch related products. Insiders say that Charles Schwab will offer contracts through Cboe Global Markets, allowing users to bet on the performance of the S&P 500 index. The market operates similarly to prediction markets offered by Kalshi, Polymarket, and others, where participants make binary choices on whether the final asset price will be above or below a given level.

The company had already revealed this plan earlier this year during its first-quarter earnings call, with CEO Rick Wurster stating that the company "may have prediction markets," but he distinguished these financial market products from those that allow users to bet on sports, politics, and entertainment. Charles Schwab also plans to launch a feature called "Plus Zone," which pays users based on how close the S&P 500 closing price is to market values, even awarding multipliers for "roughly correct" predictions.

The market is expected to launch in the coming months and may expand to other indices or key financial benchmarks in the future. Charles Schwab currently manages a total client assets of $11.8 trillion. SCHW stock closed nearly 3% lower on Thursday, at approximately $91.70.