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Robinhood in talks with Crypto.com over prediction markets

Created at 25 Jul · 9:10 PM1 source↑ Market-relevant
IN SHORT

Robinhood is reportedly in discussions with Crypto.com to expand its prediction markets offering, potentially involving event contracts supplied by the crypto exchange. This comes as prediction market platforms in the US face ongoing legal challenges.

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Key Numbers

$160Robinhood stock price target
$130Previous Robinhood stock price target
$1.7 billionPredicted Robinhood prediction market revenue by 2028
$1 trillionPredicted prediction market volumes by 2030

Who's Involved

Robinhood
Trading app company in talks to expand prediction markets
Crypto.com
Crypto exchange in discussions with Robinhood
Bernstein
Analysts who raised Robinhood's stock price target
US Commodity Futures Trading Commission (CFTC)
Regulator claiming exclusive jurisdiction over event contracts

↳ Why This Matters

The potential expansion of Robinhood's prediction markets into new territory with Crypto.com could signal a growing trend in regulated event contracts, while also highlighting the ongoing regulatory uncertainty surrounding these platforms in the U.S.

Key facts

  • Robinhood is reportedly in discussions with Crypto.com to expand its prediction markets.
  • The talks involve Crypto.com potentially supplying event contracts for Robinhood's platform.
  • Robinhood launched its prediction markets in March 2025, initially facilitated by Kalshi.
  • Bernstein analysts have raised Robinhood's stock price target, citing growth potential in prediction markets.
  • Analysts forecast Robinhood's prediction market revenue could reach $1.7 billion by 2028.
  • Prediction market platforms in the U.S. are facing legal battles concerning regulatory jurisdiction.

Robinhood, the company known for its stock and cryptocurrency trading app, is reportedly in discussions with Crypto.com to expand its prediction markets offering. According to a Wall Street Journal report, the companies are exploring the possibility of Crypto.com supplying yes-or-no event contracts for Robinhood's platform.

Robinhood launched its prediction markets hub in March 2025, initially working with Kalshi to comply with U.S. Commodity Futures Trading Commission (CFTC) regulations. The platform has since utilized ForecastEx and Rotella.

This development follows a recent boost for Robinhood's stock, with Bernstein analysts increasing their price target to $160 from $130. The analysts based their optimism on the company's outlook for prediction markets and tokenized equities, projecting that Robinhood's revenue from prediction markets could reach $1.7 billion by 2028. Bernstein had previously estimated that prediction market volumes could reach $1 trillion by 2030.

However, prediction market platforms in the United States are navigating significant legal hurdles. The CFTC asserts exclusive jurisdiction over event contracts, while state gaming authorities have initiated lawsuits to restrict or block their operations.

Frequently asked questions

Prediction markets are platforms where users can trade contracts based on the outcome of future events, essentially betting on whether specific events will occur or not.

Robinhood launched its prediction markets hub in March 2025, initially facilitated by Kalshi and later using ForecastEx and Rotella, to comply with regulatory requirements.

The CFTC claims exclusive jurisdiction over event contracts, while state gaming authorities have filed lawsuits attempting to block or restrict their activities.

Bernstein analysts predict Robinhood's revenue from prediction markets could reach $1.7 billion by 2028.

What Happens Next

01Further details on the specifics of the potential partnership between Robinhood and Crypto.com may emerge.
02Legal outcomes of ongoing cases involving prediction market platforms in the U.S. will be closely watched.

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Cadence

How It Developed

Robinhood is reportedly in talks with Crypto.com regarding its prediction markets.
The discussions involve Crypto.com supplying yes-or-no event contracts.
Robinhood launched its prediction markets hub in March 2025, initially using Kalshi.
Bernstein analysts raised Robinhood's stock price target, citing prediction market potential.
Analysts predict Robinhood's prediction market revenue could reach $1.7 billion by 2028.
Prediction market platforms in the US face legal challenges over jurisdiction.
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Sources

T1
Robinhood in talks with Crypto.com over prediction markets: WSJWhile prediction market companies in the US continue to face legal battles between state and federal authorities, Robinhood is reportedly considering expanding its services.Cointelegraph

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