Robinhood’s Move Into Futures and Prediction Markets

Robinhood announced on Tuesday plans to introduce a futures and derivatives exchange and clearinghouse, extending its prediction market offerings for consumers.

Global trading and technology firm Susquehanna International Group was named a “key partner” and day-one liquidity provider, while Robinhood will be the controlling partner.

Key Takeaways From the Announcement

  • Robinhood said that its users traded more than 9 billion contracts within the last year.
  • The exchange is expected to launch in 2026 once the purchase settles.
  • Sportsbooks have taken note of the success of prediction markets and begun signing prediction partners.

Robinhood’s latest innovation will allow it to directly list and clear prediction contracts, effectively increasing its capabilities within the prediction space.

Robinhood and Susquehanna will take on a 90% stake in MIAXdx (also known as LedgerX), a Commodities Futures Trading Commission (CFTC)-licensed Designated Contract Market, Derivatives Clearing Organization, and Swap Execution Facility. Miami International Holdings (MIAX), the parent company, will hold onto 10% equity.

“Robinhood is seeing strong customer demand for prediction markets, and we’re excited to build on that momentum,” said JB Mackenzie, VP and General Manager of Futures and International at Robinhood. “Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers.”

Per the announcement, the exchange will become operational in 2026.

Rapid Growth of Robinhood’s Prediction Markets

Robinhood announced in March that it would enter prediction markets just in time for March Madness, a move facilitated by a partnership with Kalshi.

The company doubled down on sports event contracts during the summer when it announced plans to launch event contracts for the NFL and college football. While that may have seemed like a secondary ambition for the financial platform, it quickly became one of the company’s smartest decisions.

A Booming Trend in Prediction Platforms

The huge swell in popularity for prediction platforms over the last few months, spurred by the proliferation of sports event contracts and well-timed major political markets, has created a quasi-arms race within the prediction industry.

According to Robinhood’s announcement, prediction markets have “quickly become Robinhood’s fastest-growing product line by revenue.” It also noted that a whopping nine billion contracts have been traded by more than one million customers one year since launch.

Additionally, Robinhood reported that its users traded 2.3 billion event contracts during the September quarter, more than double the amount of trades recorded during the previous quarter.

Launching the exchange and expanding its prediction offerings will put Robinhood in a stronger position compared to Kalshi, the leading trading platform, and other competitors.

Prediction Markets Reach Across Industries

Numerous sportsbooks, including market leaders FanDuel and DraftKings, have taken note of the success of prediction platforms and signed their own prediction partners.

Fantasy contest operators PrizePicks and Underdog also signed partnerships with Kalshi and Crypto.com, respectively. Those moves allowed them to offer team-focused markets for the first time, along with contracts for entertainment and pop culture.

Despite the rapid growth, the prediction industry remains divisive. The Massachusetts Gaming Commission this month warned sportsbooks that they could have their operator’s license revoked if they partnered with prediction platforms to launch event contracts.