Charles Schwab and Citadel also enter the prediction market..."Not gambling, but finance"

▲ Prediction market, Bitcoin (BTC)/AI generated image

Wall Street financial giants Charles Schwab and Citadel Securities are exploring entry into the prediction market, presenting a new investment paradigm, spurred by the explosive growth of Polymarket.

According to a report by virtual asset media outlet Cointelegraph on April 19 (local time), Charles Schwab President Rick Wurster recently stated at the Q1 earnings announcement that the company is seriously considering entering the prediction market. Wurster explained that while a survey of customers did not yet confirm overwhelming interest, providing prediction market services on their platform would be very straightforward. Wurster made it clear that the company plans to pursue the business in a way that helps long-term asset formation rather than simple gambling.

Citadel Securities President Jim Esposito also mentioned at the recent Semafor conference in Washington D.C. that he is closely monitoring the development of the prediction market. Esposito stated that while the market currently lacks liquidity, its size is expected to expand dramatically in the future, keeping the door open for participation. Esposito particularly noted that event contracts, such as those related to elections, could be an efficient means of managing macroeconomic risks in investment portfolios.

The prediction market, centered on Kalshi and PolyMarket, recorded an all-time high integrated trading volume of $23.6 billion in March alone. This level is close to half of the total trading volume of $51 billion for the entire year 2025, indicating that virtual asset-based prediction platforms are entering the financial mainstream. Institutional investors are demanding transparent and sophisticated event contract tools to hedge against complex geopolitical changes.

Charles Schwab plans to accelerate its entry into the virtual asset ecosystem by launching spot trading services for Bitcoin (BTC) and Ethereum (ETH) in the first half of 2026. Schwab's entry into the prediction market, managing over $12 trillion in client assets, could be a decisive factor in boosting the credibility of the existing market. The participation of market makers like Citadel Securities will solve liquidity issues and drive active participation from institutional investors.

The entry of traditional financial institutions into the prediction market is a process where virtual asset technology is becoming entrenched as infrastructure within the institutional financial system. Investors have begun to use prediction markets as a new hedging tool to manage macroeconomic uncertainties. The participation of Wall Street giants marks the beginning of a transformation where prediction markets are becoming an essential component of global financial portfolios, beyond just a niche market.

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