Kalshi Investor Schwab Staying Abreast of Prediction Market Developments
Posted on: June 10, 2025, 10:39h.
Last updated on: June 10, 2025, 11:01h.
- Schwab says it’s keeping an eye on prediction markets though it has no imminent plans
- Remarks come after Kalshi co-founder Tarek Mansour said more brokerage firms will integrate prediction markets on their platforms
Charles Schwab, the brokerage firm that’s a Kalshi investor, said it’s staying up to date on developments in the prediction markets space, but it has no plans to enter that arena over the near term.
The comments provided by the financial services company to InvestmentNews arrived after Kalshi co-founder and CEO Tarek Mansour said at a May conference that his company’s offerings could soon be available on platforms on which investors check their 401(k) plans.
Schwab is one of the largest 401(k) providers in the US and an investor in Kalshi — a combination that stoked speculation that Mansour may have been implying that Schwab or a comparable company could be one of the trading houses that brings prediction markets to its customers.
In February 2021, Charles Schwab himself joined Sequoia Capital, Henry Kravis, SV Angel, Neo, and YC Continuity in a $30 million funding round for Kalshi. Casino.org reached out to Schwab for comment on the prediction markets issue, but that request wasn’t responded to.
Clearing Up Mansour’s 401(k) Comment
Speaking at the Solana Accelerate conference last month, Mansour made remarks that some took to mean the yes/no contracts offered by Kalshi and other prediction market operators could eventually be featured among the investment choices in 401(k) plans.
I think by the end of the year, we’re projecting another maybe five to six brokers, and I think within the next year and a half I would say most mainstream financial brokerages like where you have your 401(k)s and others will have access to Kalshi’s products or prediction markets in app,” Mansour said at the conference.
Kalshi moved quickly to demystify the CEO’s comments, noting that what he meant is that more brokerage firms where people can check their 401(k) balances could feature prediction markets, not that the derivatives would be offered within the retirement vehicles.
Kalshi currently has relationships with Robinhood and Webull, but neither company is a force in the 401(k) market. Cryptocurrency exchange operator Crypto.com also offers event contracts, which has prompted speculation that Coinbase Global could eventually bring event contracts to its platform.
What 401(k) Providers Could Embrace Kalshi, Others
To be clear, the sub-header above refers to companies that offer 401(k)s and trading platforms that could potentially add yes/no contracts to their broader suites of trading instruments. It doesn’t refer to offering derivatives within retirement plans.
Looking at the largest 401(k) providers beyond Schwab that also feature traditional brokerage and trading services, Vanguard, though it hasn’t commented to this effect, is almost certainly a “no” when it comes to prediction markets. The famously restrained asset manager doesn’t even allow its clients to buy Bitcoin exchange-traded funds (ETFs) on its platform.
Fidelity, itself a 401(k) giant, is far more crypto-progressive than Vanguard, indicating it could examine prediction markets in the future, but it hasn’t publicly said that’s on its agenda.
Recently, rumors surfaced that Morgan Stanley’s E*Trade, which also has a footprint in the employer-sponsored retirement plan industry, will offer cryptocurrency trading services to clients next year. That could signal willingness to explore prediction markets in the future, but that company hasn’t publicly discussed the matter.
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