Cboe is in talks to relaunch binary options contracts for retail investors, positioning regulated alternatives to compete with crypto prediction markets like Polymarket.

Cboe circles binary options reboot

Cboe Global Markets is edging back into the binary‑wager business, in what increasingly looks like a Wall Street answer to on‑chain prediction giants such as Polymarket. The exchange is “in discussions with retail brokerages to relaunch ‘all‑or‑nothing’ options contracts for individual investors that would vie with prediction markets,” the Wall Street Journal reported, citing people familiar with the matter.

Cboe described the talks as “at an early stage” and said it is also working with market makers on “revamped binary options, sometimes called fixed‑return contracts,” that pay either a set cash amount or nothing at all.“This represents, in my view, a new entry point for many individuals looking to engage in the options market,” a Cboe executive told Yahoo Finance, adding that any launch would undergo “rigorous evaluations to ensure compliance with legal standards” under SEC or CFTC oversight.

Prediction markets set the pace

The timing is not accidental. Polymarket, which brands itself as “the world’s largest prediction market,” has seen cumulative volumes climb into the hundreds of millions of dollars across more than 10,000 markets, even as researchers warn that parts of its reported turnover may be double‑counted or inflated by wash trading. Monitoring tools such as Polymarket Monitor and research from Paradigm and Fortune highlight both the depth and distortions in these markets. Despite those caveats, independent analysis puts Polymarket’s odds around 90% accurate a month before resolution and up to 94% in the final hours before an event settles, according to studies cited by Yahoo Finance, The Defiant and Polymarket Research.

For crypto traders, these flows are tightly bound to digital‑asset pricing. High‑conviction yes‑or‑no positioning around macro data, elections and ETF approvals routinely feeds into Bitcoin futures and spot volatility, turning prediction odds into a live proxy for risk appetite. This parabolic move comes as digital assets continue to trade as the purest expression of macro risk appetite. Bitcoin (BTC) is hovering around $88,235, with a 24‑hour high near $90,476 and a low near $87,549, on roughly $32.8B in dollar volumes. Ethereum (ETH) changes hands close to $2,953, with about $23.4B in 24‑hour turnover and spot quotes clustered in the $4,500–$4,600 band on major exchanges earlier this week. Solana (SOL) trades around $192, up about 2.7% over the last 24 hours, with nearly $9.8B in volume.

Can Cboe pull flow back onshore?

By floating a regulated, centrally cleared all‑or‑nothing product that “sticks to financial markets” rather than political or sports outcomes, Cboe is effectively betting that some of that speculative energy can be redirected from on‑chain venues back to listed derivatives. If it works, the next big crypto‑linked binary trade may look less like a degenerate side bet on Polymarket and more like a highly structured ticket punched through a Chicago options screen.