Robinhood announced that its prediction markets have rapidly become a significant revenue source, and the company intends to expand this business by launching a futures and derivatives exchange, along with a clearinghouse.
Since its debut in March, in partnership with the prediction market platform Kalshi, users have traded nine billion contracts across more than one million accounts, according to a statement released by the company on Tuesday.
JB Mackenzie, general manager of futures and international at Robinhood, commented on the strong demand for prediction markets and expressed the firm's commitment to building upon this momentum.
Robinhood plans to increase its investment in this area by establishing a new futures and derivatives exchange and clearinghouse. Mackenzie indicated that these infrastructure upgrades are designed to enhance the customer experience and accommodate further product innovation.
Robinhood Plans Derivatives Exchange Launch in 2026
Robinhood will serve as the controlling partner and market maker for the upcoming exchange. Susquehanna International Group is set to be the day-one liquidity provider.
The company also intends to acquire MIAXdx, an organization licensed by the Commodity Futures Trading Commission (CFTC) that functions as a derivatives clearing organization and a swap execution facility.
The derivatives exchange is projected to commence operations in 2026.
Prediction Market Activity is Rising
Prediction markets have seen a notable increase in popularity this year. Platforms like Kalshi and Polymarket have maintained steady trading volumes, even amidst broader media attention.
Kalshi, a platform regulated within the U.S. and overseen by the CFTC, recorded $4.47 billion in trading volume over the past 30 days, according to data from DefiLlama.
Polymarket, a prediction market platform based in the U.S. with a crypto-native focus, reported $3.58 billion in trading volume during the same period.
Crypto Exchanges Expand into Prediction Markets
Crypto.com recently introduced its own prediction markets offering, which is slated for integration with Trump Media.
Gemini has plans to incorporate prediction markets into its forthcoming "super app." On November 11, the company announced that it had filed with the CFTC to become a designated contract market.
On November 19, tech researcher Jane Manchun Wong shared website data suggesting that Coinbase was in the process of developing a prediction markets platform.