Citizens Bank: Predicts market annual revenue could reach $10 billion by 2030

A recent report from Citizens Bank indicates that prediction markets are experiencing rapid growth, with current annualized revenue exceeding $3 billion and projected to reach $10 billion by 2030, establishing themselves as a new asset class. The report shows a continued rise in prediction market trading volume. January's volume increased by over 40% compared to December, and February maintained a similar level, despite the expected decline after the traditional sports season. Analysts believe this trend reflects the transformation of prediction markets from a niche betting tool to a mature financial market. Citizens Bank identifies increased trading volume, a more robust market structure, and initial participation from institutional investors as key drivers of this growth. Currently, some institutions are entering the market as data users and liquidity providers, laying the foundation for wider institutional adoption. Prediction markets allow traders to price and hedge risks associated with discrete events such as election results, interest rate decisions, or merger approvals. Compared to proxy tools like index futures or options, they can reduce basis risk and provide real-time probability signals. Analysts point out that the development path of prediction markets is similar to that of the early derivatives market and digital asset industry, gradually transitioning from retail investor-dominated liquidity to participation from market makers and institutional funds. Currently, representative platforms include the regulated event contract exchange Kalshi and the decentralized prediction market Polymarket, and the industry as a whole is gradually moving towards the mainstream financial system.