Schwab to Launch S&P 500 Binary Contracts on Cboe, Raising Questions for Kalshi

Charles Schwab is preparing to roll out S&P 500-linked binary yes/no contracts through Cboe, rather than crypto-style prediction markets. The product is designed around regulated, objectively verifiable financial benchmarks and excludes categories such as politics and sports. Schwab’s move brings a major brokerage name into a fast-growing area and increases competitive pressure on less-regulated platforms, according to The Block’s May 2026 volume data.