Charles Schwab Weighs Prediction Markets, Nears Launch of Bitcoin and Ether Trading

Charles Schwab Corp. is weighing an expansion into prediction markets as it prepares to launch Bitcoin and Ether trading.

Decrypt reported on April 16 that Chief Executive Officer Rick Wurster said on the company’s first-quarter earnings call that Schwab would likely enter prediction markets at some point. He stressed that the firm would focus on contracts tied to financial events rather than traditional betting categories such as sports, politics and pop culture.

Predictions tied to financial events such as inflation data are fundamentally different from wagers on sports or popular culture, Wurster said, adding that the area warrants serious consideration. He also said any eventual launch would steer clear of gambling-like features.

Schwab has about $11.8 trillion in client assets. A firm of that size considering the business signals that prediction markets are moving from the financial fringe toward the mainstream.

Still, the company is cautious about an immediate launch. Wurster said the product is not currently a top client demand and noted that retail investors statistically struggle to make money from betting.

Traditional finance firms have recently stepped up efforts to roll out prediction-style products through existing market infrastructure. Cboe Global Markets is preparing contracts tied to financial events, while Nasdaq has proposed options products that let investors bet on whether specific events occur.

Separately, Schwab is accelerating its push into digital assets. The company plans to support trading in Bitcoin (BTC) and Ether (ETH) within the next few weeks. Trading fees will be about 0.75%, with the firm aiming to offer one of the lowest rates in the industry.

Schwab also plans to gradually add features common on existing crypto trading platforms, including deposit and withdrawal functions and support for a broader range of assets. The move is aimed at narrowing the gap with rivals including Robinhood and Coinbase.