Goldman Sachs CEO David Solomon has indicated a growing institutional interest in prediction markets, a niche of finance that has been attracting attention from traders. Speaking during Goldmanās fourth-quarter earnings call, Solomon shared insights about the bankās active exploration of this sector.
"The prediction markets are also super interesting," Solomon commented in the call, as per a FactSet transcript. "I personally met with the two big prediction companies and their leadership in the last two weeks and spent a couple of hours with each to learn more about that. We have a team of people here that are spending time with them and are looking at it."
Platforms such as Kalshi and Polymarket enable investors to trade contracts based on the outcomes of global events, including elections, economic data, and policy decisions. Goldmanās interest aligns with the increasing visibility of prediction markets amid discussions on market transparency and regulatory frameworks.
Some of these platforms are under the Commodity Futures Trading Commissionās regulation, which Solomon noted gives them similarities to traditional financial instruments. "When you think about some of these activities, particularly when you look at some of the ones that are CFTC regulated, they look like derivative contract activities," said the CEO, who has led Goldman since 2018. "So I can certainly see opportunities where these cross into our business."
However, Solomon urged caution regarding the timeline for Wall Streetās adoption of prediction markets. He suggested that while there is significant potential and interest, the industry should not expect a rapid integration.
"I think there's a lot of reason to be excited and interested in these things," he said. "But the pace of change might not be as quick and as immediate as some of the pundits are talking about. But I think they're important, real. And we're spending a lot of time."
Note: CNBC and Kalshi maintain a commercial relationship.