Goldman Sachs CEO is looking at how the Wall Street bank can get involved in prediction markets

Goldman Sachs CEO David Solomon stated Thursday the large Wall Avenue funding financial institution is actively exploring alternatives in prediction markets, signaling rising institutional curiosity in a nook of finance that has gained elevated traction amongst merchants.

“The prediction markets are additionally tremendous fascinating,” Solomon stated on Goldman’s fourth-quarter earnings name, in accordance with a FactSet transcript. “I personally met with the 2 large prediction firms and their management within the final two weeks and spent a few hours with every to study extra about that. Now we have a workforce of individuals right here which might be spending time with them and are taking a look at it.”

Prediction markets like Kalshi and Polymarket permit buyers to commerce contracts tied to the end result of world occasions, starting from elections and financial information releases to coverage selections. Goldman’s curiosity comes as prediction markets achieve visibility amid debates over market transparency and regulatory boundaries.

Some platforms function underneath the oversight of the Commodity Futures Buying and selling Fee, a distinction that Solomon stated makes the merchandise look more and more just like conventional monetary devices.

“When you concentrate on a few of these actions, notably if you have a look at among the ones which might be CFTC regulated, they seem like spinoff contract actions,” stated the 63-year outdated CEO, who’s led Goldman since 2018. “So I can definitely see alternatives the place these cross into our enterprise.”

Nonetheless, Solomon struck a notice of warning on timing, pushing again on expectations that Wall Avenue’s embrace of prediction markets will probably be speedy.

“I believe there’s plenty of cause to be excited and interested by these items,” he stated. “However the tempo of change may not be as fast and as fast as among the pundits are speaking about. However I believe they’re essential, actual. And we’re spending plenty of time.”

Disclosure: CNBC and Kalshi have a business relationship.