Schwab Eyes Prediction Markets, Plans Bitcoin and Ether Trading

Charles Schwab indicated it will likely offer prediction markets limited to financial events and will start trading Bitcoin and Ethereum in the coming weeks, CEO Rick Wurster told investors during the firm’s first-quarter earnings call.

Wurster said the firm plans to keep any prediction-market products narrowly focused on wagers tied to financial outcomes, excluding topics such as sports, politics and pop culture. “At some point, we will likely have prediction markets,” he said.

The CEO described prediction markets as a lower-priority area for the firm and noted evidence that most gamblers lose money. “It’s not at the top of our clients’ list,” he added. “When we do, we’ll stay away from gambling.” A Schwab spokesperson said the company had no further details beyond the remarks made on the call.

Schwab reported record activity in the first quarter, including 9.9 million trades, and said it holds $11.8 trillion in total client assets. Company executives framed potential new products against that scale as they weigh product design and oversight.

On cryptocurrency, Schwab said it will roll out trading for Bitcoin and Ethereum in the coming weeks. The firm set a transaction fee of 0.75% per trade and described that rate as among the lowest available to retail customers. Schwab plans to expand crypto functionality over time, including options to deposit and withdraw digital assets and to add more tokens.

Executives said the cryptocurrency rollout will focus on familiar retail trading tools while emphasizing custody arrangements and operational controls consistent with its brokerage model. The company characterized the launch as a measured expansion of its product set rather than a move to replicate specialist crypto trading platforms.

The comments on prediction markets come as other market operators prepare event-based contracts tied to financial outcomes and as some brokerages integrate event platforms for retail clients. Regulators have increased scrutiny of new contract types and decentralized trading platforms; federal agencies and congressional committees have raised questions about trade timing and oversight for event-based products.

Wurster did not detail a regulatory pathway for Schwab’s potential prediction markets but said the firm will carefully evaluate the products before offering them. The company said it will proceed cautiously and provide more information if and when it finalizes plans.