Goldman Sachs could soon jump into booming prediction markets, CEO David Solomon says
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- Goldman Sachs could wade into prediction markets soon.
- CEO David Solomon says that the investment bank is exploring opportunities in the booming market.
- On the bank's earnings call, he said that Goldman has been in touch with the big players in the space.
Buried beneath headlines about Goldman Sachs' blowout earnings report was an interesting update from the investment banking titan regarding a foray into a booming corner of the market.
Goldman Sachs CEO David Solomon said the bank is considering getting into prediction markets during the firm's earnings call on Thursday.
Solomon said the bank has a team looking into how it can enter the market, which has boomed since the 2024 election.
"I think the prediction markets are also super interesting," he said. "I personally met with two big prediction companies in their leadership in the last two weeks and spent a couple of hours with each."
Solomon didn't elaborate on what came out of the meetings, but he noted that the betting platforms resemble derivatives markets.
"I can certainly see opportunities where these cross into our business, and we're very focused on understanding that, understanding the regulatory structure, that's going to develop around that, seeing where there are opportunities for us to have capabilities or to partner to serve our clients around these," he said.
Solomon was also cautious, however, in overstating the transformative potential of prediction markets.
"I think there's a lot of reason to be excited and interested in these things, but the pace of change might not be as quick and as immediate as some of the pundits are talking about."
Betting sites like Polymarket have seen a surge in volume in the last year, with the prediction market broadly garnering heightened attention for accurately calling the outcome of the 2024 election. The market has also drawn scrutinty lately. Recent trades involving the US raid on Venezuela have raised speculation about insider trading.