Robinhood strikes into prediction markets with FTX-linked acquisition

An organization with ties to the defunct cryptocurrency trade FTX is being acquired by Robinhood Markets and Susquehanna Worldwide Group as a part of a push into prediction markets.

Based on a Reuters report on Tuesday, Robinhood and Susquehanna will purchase a 90% stake in LedgerX, one of many few solvent corporations tied to FTX following its chapter submitting in 2022. The transfer got here simply hours after Robinhood introduced the launch of a futures and derivatives platform with choices for prediction markets. 

Robinhood initially reported the acquisition of a majority stake in MIAXdx, an trade and clearinghouse licensed by the US Commodity Futures Buying and selling Fee. MIAXdx, beforehand often called LedgerX, was acquired by Miami Worldwide Holdings (MIAX) for $50 million in 2023 amid FTX’s chapter. MIAX will retain a ten% stake within the agency, in line with Reuters.

“By way of our retained fairness stake, the transaction introduced in the present day will present MIAX with entry to the rising prediction markets on an expedited foundation,” mentioned MIAX CEO and chair Thomas Gallagher.

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The acquisition may put Robinhood able to problem massive prediction platforms similar to Kalshi and Polymarket. Prediction markets surged considerably in 2024, pushed partially by curiosity in bets on US elections.

Not the one sport on the town

Since a federal court docket cleared the best way for Kalshi to supply occasion contracts tied to US elections in October 2024, the market has seen vital investments from corporations out and in of the crypto trade.

Kalshi reportedly elevated its valuation to $11 billion final week after a funding spherical led by Sequoia Capital and CapitalG. Polymarket additionally scored a regulatory win on Tuesday, with the CFTC approving the corporate to function a US-intermediated buying and selling platform.

Cryptocurrency trade Coinbase can also be reportedly engaged on a prediction markets platform backed by Kalshi.