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

Goldman Sachs The giant Wall Street investment bank is actively exploring opportunities in prediction markets, CEO David Solomon said Thursday, signaling growing institutional interest in finance, which is gaining traction among investors.

“Prediction markets are also extremely interesting,” Solomon said on Goldman’s fourth-quarter earnings call, according to a FactSet transcript. “Over the past two weeks, I have personally met with two major forecasting companies and their leaders and spent several hours with each of them to learn more about this issue. We have a team here who has been spending time with them and looking into the issue.”

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

Some platforms operate under the oversight of the Commodity Futures Trading Commission; This distinction makes products increasingly similar to traditional financial instruments, according to Solomon.

“When you think about some of these activities, especially when you look at some of the activities that are regulated by the CFTC, they look like derivative contracting activities,” said the 63-year-old CEO, who has led Goldman since 2018. “So I can definitely see opportunities where these come into play in our business.”

Solomon was cautious about the timing, though, pushing back on expectations that Wall Street would quickly embrace the prediction markets.

“I think there are a lot of reasons to be excited and interested in these things,” he said. “But the pace of change may not be as rapid and sudden as some experts are talking about. But I think they’re important, they’re real. And we’re spending a lot of time.”

Disclosure: CNBC and Kalshi have a business relationship.