Charles Schwab Is Entering Prediction Markets With Cboe — Here's Why Polymarket and Kalshi Should Be Worried

WHY IT MATTERS

Prediction markets let you trade on the outcome of real-world events — like 'Will the Fed raise interest rates?' or 'Who will win the next election?' Think of it like a stock market, but instead of buying shares in companies, you're buying contracts that pay out based on whether something happens or not. Until now, these markets were mostly run by newer crypto and fintech companies. Charles Schwab is like the Walmart of investing — huge, trusted, and used by millions of everyday Americans. Them entering this space is like a major grocery chain starting to sell a product that was previously only available at specialty shops. It could bring prediction markets to a much wider audience, but it also means tougher competition for the smaller platforms that built this market from scratch.