Mainstream Wall Street investment banks want to participate too! Goldman Sachs CEO says they are exploring opportunities in prediction markets.

Goldman Sachs is eyeing investment opportunities in the prediction market sector, hoping to benefit from this rapidly growing platform where participants place bets on real-world events.

Goldman Sachs CEO David Solomon called prediction markets “very interesting,” and said he personally met with the management teams of two of the largest prediction market companies in the past two weeks. Solomon stated during a Thursday conference call with analysts after Goldman Sachs released its fourth-quarter results, “We already have a team here engaging with them and conducting research.”

If Goldman Sachs, a mainstream Wall Street investment bank, formally enters prediction markets, it may enhance the legitimacy and trading volume of this relatively loosely regulated but rapidly expanding financial niche. Some market-making institutions have already taken the lead in entering the sector.

Goldman Sachs, in fact, already has certain ties with the prediction market. According to LinkedIn profiles, Tarek Mansour—CEO and co-founder of Kalshi, one of the largest companies in the prediction market sector—worked as an analyst at Goldman Sachs for several months while in college.

When talking about prediction market contracts regulated by the U.S. Commodity Futures Trading Commission (CFTC), Solomon said: “I can completely see opportunities for them to intersect with our business.” However, he also cautioned that the speed of adoption for prediction markets may not be as quick as some observers expect.

Currently, prediction market trading volume has surged from less than $100 million per month at the beginning of 2024 to more than $8 billion by December 2025. Although liquidity still lags behind traditional asset classes, arbitrage opportunities and hedging potential are driving professional traders to enter the space at an accelerating pace.

According to a Wallstreetcn.com article, professional institutions are now participating, and Wall Street is hiring traders to trade in prediction markets. Renowned trading firms including DRW, Susquehanna, and Tyr Capital are setting up dedicated prediction market trading teams, with base salaries up to $200,000 per year.

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