Following the success of the cryptocurrency platform Polymarket, Robinhood (HOOD) is launching a prediction market on its platform, which will be accessible via the CFTC-regulated exchange Kalshi, the company announced, with contracts becoming available today.
The prediction markets hub will enable customers to wager on the outcomes of various events, as shared by HOOD in an official announcement.
This development positions Robinhood as yet another competitor to Polymarket, the largest predictions market globally, which gained significant traction last year during the U.S. presidential election and numerous other significant news events. The surge in interest led to increased scrutiny of the platform; an NBC News analysis indicated it attracted over $3.6 billion in betting activity related to the presidential election alone.
Questions were raised regarding the identities of the bettors and whether the results on the platform could have influenced the election’s outcome. The CEO of Polymarket, Shayne Coplan, faced an FBI raid at his New York City residence, during which agents confiscated his phone and other electronic gadgets.
Robinhood stated that it has been in discussions with the U.S. Commodity Futures Trading Commission (CFTC) in recent weeks.
“We are confident in the potential of prediction markets and believe they are crucial at the intersection of news, economics, politics, sports, and culture,” expressed JB Mackenzie, the VP & GM of Futures and International at Robinhood.
To mark the launch of this product, traders will have the opportunity to bet on the possible upper limit of the target fed funds rate in May, along with the upcoming college basketball tournaments for both men and women, according to Robinhood.
On Monday, shares of the trading application rose by 2.3%, reaching $40.17.