Goldman Sachs CEO looks at how to get involved in prediction markets

Goldman Sachs CEO David Solomon said Thursday the giant Wall Street investment bank is actively exploring opportunities in prediction markets, signaling growing institutional interest in a corner of finance that has gained increased traction among traders.

“The prediction markets are also super interesting,” Solomon said on Goldman’s fourth-quarter earnings call, according to 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.”

Prediction markets like Kalshi and Polymarket allow investors to trade contracts tied to the outcome of world events, ranging from elections and economic data releases to policy decisions. Goldman’s interest comes as prediction markets gain visibility amid debates over market transparency and regulatory boundaries.

Some platforms operate under the oversight of the Commodity Futures Trading Commission, a distinction that Solomon said makes the products look increasingly similar 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 63-year old CEO, who’s led Goldman since 2018. “So I can certainly see opportunities where these cross into our business.”

Still, Solomon struck a note of caution on timing, pushing back on expectations that Wall Street’s embrace of prediction markets will be rapid.

“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.”

Disclosure: CNBC and Kalshi have a commercial relationship.