Koho Rejects Prediction Markets Amid Banking License Push
AI-generated image · Bay Street Wire
CEO Daniel Eberhard views prediction markets as gambling, prioritizing stability as the fintech unicorn seeks a Schedule 1 license.
Koho is steering clear of prediction markets, according to reporting from BetaKit. CEO and founder Daniel Eberhard told BetaKit that he views prediction markets as "techwashing" for gambling and believes they could result in negative social effects, comparing the trend to altcoins and NFTs.
The decision comes as the fintech unicorn nears the conclusion of a five-year effort to secure a Schedule 1 banking license. Eberhard stated that obtaining this license will enable Koho to provide more competitive savings and lending rates for Canadian consumers.
The company's risk-averse posture follows a significant capital injection earlier this year, when Koho raised $130 million CAD to support its transition from a challenger bank to a formal banking institution. While the company continues to expand its portfolio—including potential ventures into the telco space—Eberhard maintains a principled stance against integrating betting-style markets as the firm prepares for the regulatory requirements of a full bank.