Banks, asset managers and other financial service providers are facing a unique opportunity to further develop their business models: blockchain-based prediction markets open up the possibility of trading events themselves – not just their effects.
Our experts explain what this means for the industry and how market participants can position themselves to strengthen their competitiveness in the compact white paper "More than a game (in german).
Prediction markets open up innovative options for risk management and strategy: instead of interpreting complex contract terms and using derivatives for this purpose, they are based on individual verifiable event questions such as: 'Will Company X repay its bonds by 31 December?'. The answer is clear: yes or no. Trading is automated and transparent via so-called smart contracts. In future, this will create an ecosystem that challenges traditional structures and promotes new platform models.
