Report: Charles Schwab Targets Kalshi and Polymarket Territory With New Cboe Deal

The brokerage Charles Schwab has reportedly partnered with Cboe Global Markets to connection binary-style options contracts tied to the S&P 500, according to a Wall Street Journal (WSJ) report citing “people acquainted with the matter.” The contracts fto customers wager connected whether the scale volition adjacent supra oregon beneath a acceptable onslaught price. A close telephone pays a fixed amount. A incorrect 1 expires worthless.

This is Schwab’s archetypal factual measurement into prediction-market territory. It follows months of nationalist hesitation from CEO Rick Wurster.

A Shift From Earlier Caution

In December 2025, Wurster told the WSJ that Schwab planned to enactment distant from prediction markets and analyzable leveraged products. He pointed to the blurry enactment betwixt investing and gambling, and the connection it sends to younger investors chasing speedy outcomes.

By April, his code had changed. On Schwab’s first-quarter net call, Wurster said the steadfast was “taking a hard look” astatine prediction markets, but lone ones tied to fiscal events similar inflation information oregon scale performance. He drew a wide enactment against sports, politics, and popular civilization markets.

Now that look has turned into action.

How the Contracts Work

Schwab and Cboe Global Markets are said to beryllium gathering the merchandise connected existing, regulated options infrastructure alternatively than a standalone prediction platform. Cboe has already moved to database Mini S&P 500 Index Binary Options, cash-settled contracts that wage either $100 oregon $0 depending connected wherever the scale lands comparative to the onslaught price.

The 2 firms are besides reportedly exploring Cboe’s “Plus Zone” feature, which offers partial payouts for near-miss outcomes alternatively of an all-or-nothing result.

Schwab plans to support the offering narrow, the WSJ study notes. Contracts volition way lone objectively verifiable fiscal benchmarks, starting with the S&P 500. The steadfast has ruled retired sports, elections, and different non-financial outcomes, a favoritism Wurster has repeated since December.

The contracts are expected to scope customers wrong the coming months.

Why It Matters

Schwab manages astir $11.8 trillion successful lawsuit assets crossed 47.2 cardinal accounts, based connected first-quarter 2026 figures. Any merchandise rollout astatine that standard reaches a lawsuit basal that astir platforms successful this abstraction don’t have.

Prediction markets person grown accelerated since the 2024 predetermination cycle, expanding into sports, economics, and argumentation outcomes. Kalshi and Polymarket person posted grounds volumes this year, and the 2026 FIFA World Cup has pushed sports-related betting connected those platforms good past $3 cardinal successful combined volume.

Other brokerages are watching the aforesaid trend. Robinhood has expanded its lawsuit contracts business, and Interactive Brokers has bundled entree to Kalshi. Schwab’s introduction adds a large sanction to that list, though its scope stays deliberately limited.

By routing the merchandise done Cboe’s regulated options model alternatively of gathering a caller platform, Schwab avoids overmuch of the regulatory uncertainty tied to standalone prediction markets. It besides keeps the merchandise wrong the brokerage relationship operation that customers already use.