Robinhood Markets is partnering with Kalshi, a CFTC-regulated platform, to launch a prediction market hub within its app. The hub will allow users to trade event contracts on major global events, including sports, politics, and even the Federal Reserve’s interest rate decisions.

Following the announcement, Robinhood shares (HOOD) surged 7.1%.

Kalshi is a prediction market like Polymarket, but the two platforms use different technologies. Polymarket is a decentralized prediction market built on Ethereum and Polygon (Layer 2 scaling solution), leveraging smart contracts to execute and settle trades transparently on the blockchain.

Kalshi does not use blockchain technology for trading or settlement. It is a centralized exchange that operates under traditional financial regulations. In the U.S., its operations fall under the regulatory authority of the Commodity Futures Trading Commission (CFTC).

Robinhood expects that the prediction markets hub to allow the company to better serve its customers “as they look to engage with events that align with their interests."

Robinhood has significantly expanded its cryptocurrency initiatives, aiming to capture its share of the growing digital assets market.

In 2024, the app expanded Robinhood Crypto into Europe, offering users in various countries the ability to buy and sell a growing number of cryptocurrencies. It has also added features like crypto transfers and staking rewards for certain cryptocurrencies. In the U.S., Robinhood is working to add crypto futures trading.

Now, with Kalshi, Robinhood clearly aims to tap into the growing popularity of prediction markets driven by platforms like Polymarket. VP JB Mackenzie said, “Prediction markets play a key role at the intersection of news, economics, politics, sports, and culture.”

Share this article
The link has been copied!