Blame it on crypto if you will, but Goldman Sachs and other investor bankers have lost their natural disinclination to dabble in products that do not belong to the established financial vanguard.
Prediction Markets Are Not So Easily Dismissed on Wall Street
Now, the bank may be looking to take a step into prediction markets, as confirmed by its CEO, David Solomon, who commented on Thursday and said that prediction markets are, in fact, “super interesting.”
“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,” Solomon explained.
He argued that these markets were like derivative contract activities, meaning that there is a crossover with Goldman Sachs’ own business and interests.
While investment bankers seem overall more open to embracing the next chapter of consumer-focused and driven innovation, though, Solomon has advised against betting on prediction markets becoming a mainstream reality in the sector immediately.
It would take time, he argues. A nod from one of the biggest financial institutions in the United States, however, is not in itself a small thing. Prediction markets have traded heavy blows with regulators and have been dragged into courts.
Don’t Bet on Investor Bankers Swooning for Prediction Markets Yet
Oftentimes, platforms such as Kalshi have gone on the offensive in a preemptive bid to reframe the debate and pry it away from the legal pitfall of defining these products as a form of sports gambling.
Kalshi, in particular, recently got a judge to side with it against Tennessee, which had ordered it to block its products. The company received a temporary relief, allowing it to argue its case.
The company has also called for a dismissal of a lawsuit brought against it by the Ho-Chunk Nation in Wisconsin. Until the legality of prediction markets remains so volatile, investment bankers would be less inclined to rush headlong into the sector.