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Robinhood is
expanding deeper into the world of prediction markets and derivatives, with the
trading app reporting rapid user uptake in its new contracts and announcing
plans to operate a regulated futures and derivatives exchange.

Prediction Market Volumes on
Robinhood Hit Milestones

Since
unveiling prediction market contracts in March, the publicly listed (NASDAQ:
HOOD) retail trading platform says more than nine billion contracts have
changed hands, with over one million users taking part on its platform.

JB
Mackenzie, Robinhood’s general manager of futures and international, credited
“strong customer demand” and signaled plans to grow the offering into a broader
financial marketplace.

“Our
investment in infrastructure will position us to deliver an even better
experience and more innovative products for customers.”

The
prediction market surge comes at a time when similar platforms like Kalshi and
Polymarket are reporting record trading volumes. Kalshi, which also partners
with Robinhood, logged about $4.47 billion in trading over the past month,
while Polymarket reported $3.58 billion for the same period, as retail
investors increasingly use these venues to speculate on real-world events.

Derivatives Exchange to
Launch In 2026

Looking to
capitalize on this trend, Robinhood will roll out a new futures and derivatives
exchange in 2026, becoming the controlling owner and leading market maker. The
launch will follow Robinhood’s planned acquisition of MIAXdx, a licensed
exchange and clearinghouse regulated by the Commodity Futures Trading
Commission (CFTC), and brings in Susquehanna International Group as the initial
liquidity provider.

MIAX, the
parent company of MIAXdx, is expected to retain a minority stake in the new
venture. Robinhood will use the independent joint venture to serve other
commission merchant platforms, aiming to “add more choices for consumers” and
provide faster, broader access to market contracts.

Industry Race to Capture
Prediction Market Growth

Robinhood’s
move comes as crypto and fintech competitors expand in the space. Crypto.com
recently launched its prediction market, with integration plans involving Trump
Media, while Gemini has filed for regulatory approval to open its own event
contract marketplace. Public reports also suggest Coinbase is eyeing a
similar entry.

Industry
analysts note that prediction markets, historically a niche, have emerged as
one of 2025’s busiest corners of digital trading. The flourishing activity is
driven by election-year speculation, new regulatory clarity, and demand for
tradable event contracts, which bridge retail and institutional interest in
non-traditional risk markets.

New betting
options, however, have less and less to do with investing. Now contracts cover
everything from holiday sneaker releases and Supreme apparel to Pokémon card
collections and Pop Mart Labubu figurines.

This article was written by Damian Chmiel at www.financemagnates.com.

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