Robinhood Moves In as Prediction Market Exchange Changes Hands
The world of financial trading is shifting rapidly, and Robinhood Markets, widely known as Robinhood, is pushing hard to stay ahead. Recently, Robinhood struck a major deal that could reshape its path. In late November 2025, Robinhood and Susquehanna International Group agreed to take over a regulated exchange previously operated by Miami International Holdings. The exchange, known as LedgerX (formerly part of the defunct FTX), is now 90% owned by Robinhood and Susquehanna, with Miami International Holdings retaining a 10% stake.
This acquisition marks a major step for Robinhood, one that transforms it from a platform for stocks and crypto to a more comprehensive player in prediction markets, derivatives, and event-based trading.
What’s Changing: From Stocks to Prediction Markets
Originally built to offer retail investors a way to trade stocks, options, and crypto at low cost, Robinhood has steadily expanded its offerings. In March 2025, the company introduced a “Prediction Markets Hub” inside its app. Users could then trade event-based contracts tied to outcomes like interest rate decisions and major sporting events.
Now with the LedgerX acquisition and a joint venture with Susquehanna, Robinhood will operate its own futures and derivatives exchange and clearinghouse. This isn’t just a light add-on; it’s a serious structural expansion designed to support high-volume, regulated contracts that go beyond traditional stocks and crypto.
Robinhood says that this new exchange, expected to go live in 2026, will serve not only its own customers, but also other futures commission merchant (FCM) platforms. That broadens the potential reach well beyond Robinhood’s existing user base.
Why This Matters: Growth, Regulation, and Market Demand
Prediction markets are fast becoming one of Robinhood’s most compelling growth engines. In just a short time since launch, over 1 million users have traded roughly 9 billion contracts on its platform, a striking indicator of strong demand.
Trading is now open 24/7, giving users round-the-clock access to event-based contracts. This flexibility contrasts sharply with traditional stock market hours and can appeal to users who want to react quickly to global events.
By acquiring a regulated exchange like LedgerX and partnering with a major liquidity provider such as Susquehanna, Robinhood is strengthening its infrastructure. This could ensure faster trade execution, clearer regulation compliance, and a more stable foundation for future growth.
In short: Robinhood is betting on prediction markets as the next major frontier and doing so under a compliance-focused, regulated framework, rather than the “wild west” environment that has characterized some crypto-based event markets.
What This Means for Users and the Broader Market
For users of Robinhood, this expansion means more choices. Beyond trading stocks, crypto, or options, they can now speculate on event outcomes, sports events, economic indicators, or political developments, through contracts instead of traditional investments.
Such a move could change how people think about investing. Event contracts are often shorter-term and driven by sentiment, news, or expectations. This could attract a crowd more interested in rapid gains, market predictions, or even hedging against real-world events.
For the broader finance landscape, Robinhood’s move may trigger increased competition. Other players, whether in digital assets, traditional finance, or crypto, may feel pressure to enter or expand their own prediction markets. In turn, regulatory bodies may intensify scrutiny over event-driven trading, especially if it intersects with what used to be considered gambling or speculative betting.
Risks and Challenges Ahead
While the expansion is exciting, it carries inherent risks. Event-based contracts tend to be volatile. Prices can swing sharply based on news, rumors, or unexpected developments. That can lead to large gains, but also steep losses.
Moreover, not all users may understand the nature of prediction markets. Treating them like traditional investments could mislead some into underestimating risk. Education and transparency will matter a lot.
Regulation remains a wildcard, too. Although LedgerX is regulated and Robinhood is working under a CFTC-licensed framework, sudden regulatory changes, especially around event-based markets, could affect the business’s trajectory.
Finally, liquidity and market participation will be key. If interest wanes, contracts may become less tradable. Robinhood’s partnership with a major liquidity provider is a good sign, but maintaining liquidity long-term is never guaranteed.
Outlook: Is Robinhood Poised to Lead the Next Market Wave?
Given its user base, brand recognition, and now fortified infrastructure, Robinhood seems well-positioned to ride the wave of prediction-market growth. Its move into regulated derivatives and clearinghouse operations signals seriousness.
For investors and retail traders, especially those interested in diversification beyond traditional assets, Robinhood’s expanded offerings could open doors. This shift could also rearrange perceptions of what “investing” means: from long-term stock positions toward shorter-term event-driven contracts.
Whether this becomes a mainstream trading paradigm depends on demand, regulation, and how effectively Robinhood navigates this new territory. For now, it has taken a bold step.
FAQs
A prediction market allows users to trade contracts that pay out based on the outcome of real-world events, for example, who will win a sports game, whether a certain economic rate will rise, or election results. On Robinhood, these are traded like commodities or derivatives, not traditional stocks or crypto.
The new exchange, built through a joint venture with Susquehanna, is expected to begin operations in 2026. It will serve Robinhood’s users as well as other futures and derivatives traders via Futures Commission Merchant (FCM) platforms.
Yes. By acquiring a regulated platform (LedgerX) and working under licenses regulated by the Commodity Futures Trading Commission (CFTC), Robinhood aims to ensure compliance, transparency, and safer market operations. However, as with all trading, prediction-market contracts remain risky and subject to price volatility.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
