Morgan Stanley Joins NEXTPredict as Prediction Markets Bet on 'More Institutional' Play
Institutional interest in prediction markets is rising, but banks still want clearer regulation and market structure before moving in. JPMorgan and Goldman Sachs have already explored the space, and Morgan Stanley is now taking a more public role by joining the NEXTPredict summit as a strategic partner and leading a panel on institutional capital. The session will focus on what could attract banks and funds, and what risks or participation barriers remain. The sector’s rapid valuation growth adds pressure: Kalshi is reported at $40 billion and Polymarket at $20 billion, while DraftKings is worth about $13 billion. A major challenge is that roughly 90% of liquidity is still tied to sports contracts, so investors are betting the category can evolve into a broader institutional tool for hedging and forecasting. Morgan Stanley has already invested in Kalshi and published research on prediction-market accuracy.
