Robinhood Markets, Inc. (HOOD) stock gained ground following the announcement of a strategic partnership with Susquehanna International Group to acquire a 90% stake in LedgerX from Miami International Holdings. The deal positions Robinhood to establish a regulated futures and derivatives exchange, significantly expanding its presence in the rapidly growing prediction markets sector.
HOOD shares rose 0.52% to close at $115.57 on Tuesday, then surged 2.79% in premarket trading Wednesday to $118.80 as of 7:30 AM EST, reflecting investor optimism about the company’s expansion strategy.
LedgerX Deal Gives Robinhood Regulated Exchange Infrastructure
The acquisition of LedgerX, which Miami International Holdings purchased from FTX’s bankruptcy proceedings for $50 million in 2023, provides Robinhood with crucial infrastructure to accelerate its prediction markets offering.
According to reports, prediction market contracts on Robinhood’s platform have exceeded nine billion trades since launch, engaging more than one million active users and becoming the company’s fastest-growing revenue segment. Susquehanna will serve as the initial liquidity partner for the new joint venture, with Miami International Holdings retaining a 10% stake in LedgerX.
JB Mackenzie, Robinhood’s vice president and general manager of futures and international, emphasized the strong customer demand driving the expansion. The company plans to introduce a futures and derivatives exchange and clearinghouse through the joint venture, with operations expected to begin in 2026.
This strategic move aims to capitalize on the momentum in event-based trading, with Robinhood planning to offer contracts tied to sports, entertainment, and cultural events alongside traditional financial instruments.
Prediction Markets See Rapid Growth as Major Players Enter
The prediction markets industry has experienced explosive growth since a U.S. federal court dismissed CFTC prohibitions on election betting, attracting significant investment from major financial institutions. Intercontinental Exchange invested up to $2 billion in Polymarket in October 2025, while Kalshi was valued at $11 billion in its latest fundraising round.
InPlay Global recently partnered with exchange operator MEMX ahead of launching its sports-focused trading venue, and established exchanges like CME Group and CBOE have announced plans to enter the space.
Robinhood faces competition from crypto platforms including Crypto.com and Gemini, which are advancing similar strategies, while Coinbase is exploring potential entry into prediction markets. However, Robinhood’s early move to secure regulated exchange infrastructure positions the company to leverage its existing platform scale and $103.92 billion market capitalization.
With a 52-week trading range of $29.66 to $153.86 and year-to-date returns exceeding 210%, HOOD has demonstrated strong momentum that the prediction markets expansion could further accelerate.