Robinhood Derivatives, LLC (RHD) announced a prediction markets hub directly within the Robinhood App, giving customers the opportunity to trade on the outcomes of some of the world’s biggest events. At launch, the hub will allow customers to trade contracts for what the upper bound of the target fed funds rate will be in May, as well as the upcoming men’s and women’s College Basketball Tournaments.
“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,” said JB Mackenzie, VP & GM of Futures and International at Robinhood. “We’re excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations.”
Building a standalone prediction markets hub allows us to better serve our customers as they look to engage with events that align with their interests. Prediction markets operate within a regulated framework and leverage the power and rigor of financial market structure to facilitate greater liquidity, transparency, and price discovery.
Robinhood is committed to enabling anyone, anywhere, to trade, invest or earn on the financial assets that are available to institutions and that our retail customers want. You can read the policy paper on prediction markets for more information on our position and support for this emerging asset class.
The hub–and corresponding contracts–will initially be available across the US through KalshiEX LLC, a CFTC regulated exchange. We have been in close contact with the CFTC over the past several weeks and look forward to continuing to work with them to promote innovation in the futures, derivatives and crypto markets.
These contracts will start rolling out today and will be available to all eligible customers in the coming days.
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