TLDR
- Robinhood and Susquehanna acquiring 90% stake in MIAX Derivatives Exchange for prediction markets control
- Over 1 million users have traded 9 billion prediction contracts on Robinhood since March 2025
- Event contract volume reached 2.3 billion in Q3, representing 100% growth from Q2
- Exchange launch scheduled for 2026 with Robinhood as controlling partner and market maker
- Miami International Holdings retaining 10% ownership in previously FTX-owned exchange
Robinhood Markets just dropped a big bet on prediction markets. The trading platform is teaming up with Susquehanna International to buy 90% of MIAX Derivatives Exchange.
This isn’t a small side project. Prediction markets have become one of Robinhood’s fastest-growing revenue generators in company history.
The acquisition targets an exchange formerly owned by FTX. Miami International Holdings will keep a 10% slice while Robinhood and Susquehanna take control.
The strategy is clear. Robinhood wants to own the infrastructure behind prediction markets instead of renting it from partners.
Right now, the platform offers Kalshi’s event contracts to users. That partnership launched in March and caught fire immediately.
Trading Activity Explodes
Nine billion contracts have changed hands through Robinhood’s prediction markets. More than 1 million users are actively trading these products.
The September quarter alone saw 2.3 billion event contracts traded. That’s double the volume from the previous three months.
JB Mackenzie leads futures and international operations at Robinhood. He said the company evaluated multiple paths into prediction markets before choosing the exchange acquisition route.
The setup positions Robinhood to serve both retail traders and institutional players. Susquehanna brings market-making expertise and will provide initial liquidity when the exchange goes live.
Launch is set for 2026. At that point, Robinhood transitions from distribution partner to direct competitor against platforms like Kalshi.
Market Heating Up Across Industry
Prediction markets let users speculate on real-world outcomes. Political races, sports games, business decisions. If it can be quantified, someone will create a market for it.
Kalshi dominates the regulated U.S. space with $4.47 billion in recent monthly volume. The platform earned CFTC approval to list event-based financial contracts and created a new asset class.
Polymarket operates in crypto and has logged $3.58 billion over the last 30 days. Both platforms benefited from massive media attention in 2025.
The space is getting crowded fast. Crypto.com launched prediction markets this year with planned Trump Media integration. Gemini submitted CFTC applications in November for its own platform.
Evidence suggests Coinbase is developing a competing product too. Tech researcher Jane Manchun Wong found code pointing to prediction market features on Coinbase’s website.
Robinhood already works with Kalshi and Susquehanna already makes markets on that platform. The new exchange lets both companies capture more of the value chain.
Mackenzie said infrastructure investment will improve customer experience and enable product innovation. The company clearly views prediction markets as a cornerstone of future strategy.
When the MIAX exchange launches, Robinhood can create proprietary contracts and control clearing operations. No more splitting revenue with partners or relying on third-party infrastructure.
User adoption keeps accelerating. Quarterly volumes are doubling. Over 1 million active traders represent just the beginning of what Robinhood expects from this market.
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