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

Goldman Sachs CEO David Solomon said Thursday the elephantine Wall Street concern slope is actively exploring opportunities successful prediction markets, signaling increasing organization involvement successful a country of concern that has gained accrued traction among traders.

"The prediction markets are besides ace interesting," Solomon said connected Goldman's fourth-quarter net call, according to a FactSet transcript. "I personally met with the 2 large prediction companies and their enactment successful the past 2 weeks and spent a mates of hours with each to larn much astir that. We person a squad of radical present that are spending clip with them and are looking astatine it."

Prediction markets similar Kalshi and Polymarket let investors to commercialized contracts tied to the result of satellite events, ranging from elections and economical information releases to argumentation decisions. Goldman's involvement comes arsenic prediction markets summation visibility amid debates implicit marketplace transparency and regulatory boundaries.

Some platforms run nether the oversight of the Commodity Futures Trading Commission, a favoritism that Solomon said makes the products look progressively akin to accepted fiscal instruments.

"When you deliberation astir immoderate of these activities, peculiarly erstwhile you look astatine immoderate of the ones that are CFTC regulated, they look similar derivative declaration activities," said the 63-year aged CEO who's led Goldman since 2018. "So I tin surely spot opportunities wherever these transverse into our business."

Still, Solomon struck a enactment of caution connected timing, pushing backmost connected expectations that Wall Street's clasp of prediction markets volition beryllium rapid.

"I deliberation there's a batch of crushed to beryllium excited and funny successful these things," helium said. "But the gait of alteration mightiness not beryllium arsenic speedy and arsenic contiguous arsenic immoderate of the pundits are talking about. But I deliberation they're important, real. And we're spending a batch of time."