Robinhood Markets has set its sights on dominating the fast-growing prediction markets industry, marking a significant milestone with its recent acquisition of a controlling stake in MIAX Derivatives Exchange. This bold move positions Robinhood as a key player in the field, allowing it to innovate and expand its offerings to both retail and institutional traders.
Robinhood and Susquehanna Lead the Acquisition
Robinhood announced it secured a 90% stake in MIAX Derivatives Exchange alongside Susquehanna International Group, leaving the remaining 10% to Miami International Holdings. This acquisition is particularly notable because MIAX was previously tied to the now-defunct crypto exchange FTX. With this move, Robinhood gains newfound independence to list and clear its own prediction market contracts—without relying on existing partners like Kalshi.
Why Prediction Markets Matter
Prediction markets allow participants to bet on real-world events, ranging from sports outcomes to political elections. This industry has exploded since 2025, fueled by mainstream interest and customer engagement. For Robinhood, prediction markets have become its fastest-growing revenue stream. Since its launch in March 2025 in partnership with Kalshi, Robinhood has processed over 9 billion contracts from approximately 1 million users across the platform.
In Q3 of 2025 alone, the trading volume doubled, reaching an impressive 2.3 billion event contracts. These numbers underscore the tremendous potential for Robinhood in this space. Additionally, this acquisition provides the company with the infrastructure to develop proprietary contracts, keeping more revenue in-house while improving customer experience.
Competition Heats Up
Robinhood is not the only company eyeing expansion in prediction markets. Kalshi and Polymarket continue to lead the sector with billions in trading volume. Other players, such as Crypto.com, Gemini, and Coinbase, have also started building their prediction market platforms, signaling intensifying competition.
Notably, Susquehanna’s role in this partnership amplifies Robinhood’s capabilities. The firm brings liquidity-making expertise and will provide day-one liquidity to Robinhood’s new exchange, ensuring seamless trading experiences when the exchange launches in 2026.
What This Means for Robinhood Users
For Robinhood’s over 1 million users already participating in prediction markets, this acquisition unlocks new opportunities. Robinhood will now have the capability to innovate faster, offer a broader range of contracts, and deliver streamlined, independent services.
As Robinhood continues to double down on prediction markets, this acquisition showcases their commitment to future-proof their revenue streams and remain at the forefront of this transformative financial niche.
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