Robinhood Expands Prediction Market Reach With Launch of New Derivatives Platform

Robinhood will be opening a new derivatives and futures exchange as part of its growth into the prediction markets. Besides this, the company has also made changes on other fronts as it eyes a larger share of this $9 billion market.

Robinhood Doubles Down on Prediction Markets Expansion

In a blog post published today, the exchange announced plans to expand its prediction markets with a dedicated futures and derivatives exchange. The new marketplace will operate independently under a joint venture owned by Robinhood. Susquehanna International Group will act as a day-one liquidity provider.

Additional liquidity partners will be added in due course to boost its market depth. This step shows the company’s growth in the prediction markets. Users traded over nine billion contracts alone in its first year of service, involving over one million customers.

The new exchange will also trade with other futures commission merchants. It plans to start operations in 2026.

The company is seeing “strong customer demand” for its prediction based products, according to JB Mackenzie, Vice President at the firm.

“Robinhood sees strong customer demand for prediction markets, and we’re excited to build on that momentum,” he said. “Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers.”

The company posted net income of $556 million for Q3. This is more than triple the previous year’s figure. Meanwhile, total revenue hit a record $1.27 billion. This is inclusive of about $25 million from market activity through its partnership with Kalshi.

Kalshi itself recently partnered with Coinbase. The exchange will handle USDC custody and settlement for its platform. Robinhood has also expanded the kinds of event contracts that can be traded on its app. This includes political, entertainment, and technology-related markets.

Crypto Exchanges Push Into Prediction Markets

The market has major interest, in particular, from across the crypto and fintech sectors. Recently, Gemini filed with the CFTC seeking approval to expand its app for further offerings, including prediction markets. Coinbase is reportedly building its own platform, too.

Also, Galaxy Digital has started plans on liquidity provision with both Polymarket and Kalshi. Early testing is underway, expected to scale up if traction persists. Crypto.com has launched its own platform in partnership with Trump Media.

In another development, Polymarket said it has received an amended order from the CFTC. This allows the platform to operate as a fully intermediated U.S. exchange. The approval enables onboarding of American users under the same regulatory standards that apply to other supervised marketplaces.