Institutions Seen as Next Adopters of Prediction Markets -- Market Talk

Dow Jones12-16

1335 ET - Prediction markets are positioned to become a significant part of risk management in capital markets, Citizens director of financial technology research Devin Ryan says. Vertical integration by Robinhood and more regulatory clarity from the CFTC is setting the stage for mainstream adoption of prediction markets, including by institutions, Ryan says. "We see conditions forming and use cases that will drive institutions into the market as liquidity matures," he says. The markets' yes/no binary for contracts creates cleaner hedges and investable signals for topics like Fed decisions and litigation outcomes, Ryan says. (katherine.hamilton@wsj.com)

 

(END) Dow Jones Newswires

December 15, 2025 13:35 ET (18:35 GMT)

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