Morgan Stanley Joins NEXTPredict NYC as Strategic Partner
The bank will lead the summit’s Institutional and Capital panel as prediction markets seek broader use in trading, forecasting and risk management.
Morgan Stanley has joined NEXTPredict NYC as a strategic partner, adding a major financial institution to efforts to expand prediction markets beyond their sports-focused activity.
The bank will lead the summit’s Institutional and Capital panel through Stephen Grambling, Morgan Stanley’s head of U.S. gaming, lodging and leisure research. NEXTPredict NYC is scheduled for Oct. 22–23, 2026, at Hudson Yards in New York, with about 2,500 attendees expected.
Prediction markets use contracts tied to outcomes such as elections, economic data and corporate developments. Sports contracts make up much of the sector’s activity, while operators and investors are valuing the market on expectations that it will expand into trading, forecasting and risk management.
“Prediction markets are attracting greater attention across the financial system, but institutional participation will depend on a clear understanding of the opportunity, market structure and risks involved,” Grambling said.
Morgan Stanley participated in Kalshi’s $1 billion Series F financing announced May 7, which valued Kalshi at $22 billion. Institutional trading volume on Kalshi’s platform had increased 800% over the previous six months as of May 7.
Morgan Stanley’s Aug. 5 report, The Wisdom of Crowds in Markets: Crowd Behavior in Prediction, Betting, and Stock Markets, examined prediction markets, sports betting, parimutuel betting and equities. The report described prediction markets as systems that aggregate information, with accuracy depending on diverse views, effective aggregation and incentives for participants to be right.
It also distinguished betting markets, which are zero-sum before costs, from stocks, which have positive expected returns over time. Grambling and Michael Cyprys discussed prediction markets and sports betting in a March 19, 2025, podcast.
The strategic partnership does not establish that Morgan Stanley is launching a prediction-market trading product, brokering event contracts or committing additional capital beyond its participation in Kalshi’s financing.
“The next chapter of prediction markets will be shaped by how the largest financial institutions engage with the category,” said Pierre Lindh, co-founder and managing director of NEXTPredict.
