Robinhood Markets is reportedly in talks with Crypto.com to add the crypto exchange's prediction market contracts to its app, according to The Wall Street Journal. This potential deal would enable Robinhood customers to trade yes-or-no event contracts provided by Crypto.com directly within the Robinhood platform, expanding its current offerings which include contracts from Kalshi, Interactive Brokers' ForecastEx, and Rothera. The discussions signify Robinhood's strategy to combine its own infrastructure with products from external venues, aiming for a diverse and resilient marketplace.
This move would heighten Robinhood's rivalry with Kalshi, its existing partner, and comes after Robinhood began routing contracts to Rothera, a CFTC-licensed exchange it invested in alongside Susquehanna International Group in 2025. Since Rothera's launch, Kalshi's trading volume from Robinhood customers has reportedly shrunk. The addition of Crypto.com, which launched its US-focused prediction market platform OG in February, aligns with a hybrid strategy where Robinhood utilizes its affiliated exchange while also sourcing from third-party providers to expand market options.
Analysts at Bernstein project a significant financial impact from Robinhood's prediction market ventures, estimating its prediction market revenue could reach $586 million in 2026 and grow to approximately $1.7 billion by 2028. This outlook led Bernstein to raise Robinhood's price target to $160 from $130 per share. The broader prediction market volume is expected to soar from $51 billion in 2025 to $1 trillion by 2030, indicating a rapidly expanding sector. Robinhood reported that over $16 billion in event contracts had traded on its platform in 2026, surpassing the $12 billion traded in all of 2025.
The expansion into prediction markets is occurring amidst a complex regulatory environment. The CFTC asserts exclusive federal jurisdiction over event contracts, while various states view sports-linked contracts as gambling, leading to legal challenges. Wisconsin has filed complaints against several operators, and New York has sued Coinbase and Gemini over their event products. The CFTC has initiated its own lawsuits to counter state actions, creating a fragmented legal landscape that any deal between Robinhood and Crypto.com would need to navigate.
