Markets Schwab to Enter Prediction Markets with S&P 500 Options: WSJ
New offering enables customers to wager on index fluctuations as Coinbase and Robinhood expand their presence in the market.
By Helene Braun|Edited by Nikhilesh De Jun 19, 2026, 5:51 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
Charles Schwab building (Smith Collection/Gado/Getty Images)SummaryShow- Charles Schwab is collaborating with Cboe Global Markets to introduce innovative yes-or-no options contracts based on the S&P 500, marking the brokerage's entry into prediction markets.
- The forthcoming product will operate similarly to a binary option, providing a fixed payout or nothing, depending on whether the index closes above or below a determined threshold, with availability expected for Schwab customers in the upcoming months.
- Schwab and Cboe are considering additional contracts utilizing Cboe's Plus Zone feature and may extend to other financial indices, steering clear of markets related to politics, sports, or other non-financial events.
Charles Schwab is set to partner with Cboe Global Markets to introduce a new type of options contract allowing customers to place yes-or-no bets on the S&P 500's performance, as reported by the Wall Street Journal.
This feature is anticipated to be available to Schwab's customers in the coming months, according to sources cited by the Journal.
In contrast to conventional prediction market platforms like Polymarket and Kalshi, which typically offer contracts linked to event outcomes, Schwab's new product will resemble a binary option. This means the contract will either pay a fixed cash amount or become worthless based on whether the S&P 500 closes above or below a specified target price.
Additionally, Schwab and Cboe are discussing the potential for a related product associated with Cboe's "Plus Zone," which would provide partial payouts for predictions that are close to the final result, even if the index does not conclude exactly at the target.
There are also discussions about broadening the offerings beyond the S&P 500 to include other market indices or financial benchmarks. However, Schwab intends to concentrate on events with clearly verifiable outcomes in financial markets, avoiding contracts linked to political or sports events.
This launch will position Schwab among the latest players entering a rapidly evolving prediction markets sector, which has seen platforms like Kalshi and Polymarket gain traction among traders looking to speculate on a variety of topics from elections to economic indicators.
Moreover, cryptocurrency and retail trading companies are also venturing into this domain, with Coinbase (COIN) and Robinhood (HOOD) both recently unveiling prediction market products.
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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