- Robinhood’s launch of a prediction market in partnership with Kalshi signals its ambition to become a comprehensive financial services provider, challenging platforms like Polymarket.
- The timing of the launch, coinciding with “March Madness,” reflects a strategic effort to capitalize on high betting activity and attract new users.
In line with Robinhood’s plans to introduce crypto offerings in Singapore by late 2025, a recent CNF report highlighted that the company aims to expand its global reach by offering futures and options trading in Asia and the UK.
The prominent U.S. trading platform, Robinhood, has unveiled a new prediction markets hub within its app, enabling users to trade on the outcomes of significant events. JB Mackenzie, VP & GM of Futures and International at Robinhood, stated:
We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture.
This initiative is launched in collaboration with Kalshi, a Commodity Futures Trading Commission (CFTC)-regulated exchange. The hub’s inaugural offerings include contracts on the Federal Reserve’s target federal funds rate and the men’s and women’s NCAA basketball tournaments.
A Strategic Move into Event-Based Trading
According to a Reuters post, this development allows Robinhood to tap into the growing interest in event-based derivative contracts, which let traders speculate on real-world occurrences like elections and regulatory decisions.
In addition, Robinhood’s engineering team worked closely with Kalshi to ensure a smooth launch at market open, as shared in a tweet:
Lior, Rainer, Noah, and team were up till 4:20am working to get every single march madness game listed after Selection Sunday.
The Robinhood engineering team was working in lockstep with up to ensure a smooth launch at market open.
We did it with elections and now we will do… https://t.co/uuioaleLQ3
— Tarek Mansour (@mansourtarek_) March 17, 2025
Despite growing popularity, these trades have faced regulatory scrutiny due to their resemblance to gambling and potential for market manipulation.
Robinhood Newsroom also indicated that Robinhood’s previous attempt to enter the event contracts market faced challenges; the company had to suspend offerings related to the Pro Football Championship following regulatory feedback.
Competing in the Prediction Market Arena
Previously, as CNF reported, Robinhood relisted Solana (SOL), Cardano (ADA), and XRP in response to shifting U.S. regulatory dynamics and growing user demand for digital assets.
Since its relisting, XRP has ranked among the top 10 weekly gainers on Robinhood, reflecting strong investor interest and increased accessibility.
XRP is currently trading at $2.27, with a 24-hour volume of $3.59 billion, down 2.91% in the past day and up 5.68% in the past week. Despite the dip, its visibility and adoption continue to grow.
Capitalizing on ‘March Madness’
The timing of Robinhood’s launch coincides with the NCAA basketball tournaments, commonly known as “March Madness,” a period that traditionally sees a surge in betting activity.
Introducing the prediction markets hub aligns with Robinhood’s strategy to transform into a comprehensive financial services provider. By expanding its offerings beyond traditional stock and cryptocurrency trading, the company enhances its competitiveness with established institutional brokerages.
