The popular trading platform Robinhood (Hood) plans to expand its prediction market product, which allows traders to buy and sell contracts based on future results, in addition to the US and to global markets, the company told Bloomberg.
Robinhood sees international demand growing, especially in Europe and the UK. JB Mackenzie, Vice President and General Manager for Futures and International at the company, users said abroad have shown special interest in this new form of trade.
“We are definitely looking to offer it globally, and my goal or focus is to ensure that it is a regulatory-compatible product wherever we go,” Mackenzie told Bloomberg.
To this end, Robinhood has begun discussions with overseas regulators, including Britain’s financial behavioral authority, to investigate how a local version of the product could be structured, he said.
The move follows its recent partnership with blockchain-based and CFTC-regulated Kalshi, which allows users to focus on the results of real world events, such as choices, economic data releases or geopolitical development.
Rise of Prediction Market
Push to the prediction markets comes in the midst of an increase in interest in event-based trade, partially triggered by the increase of crypto-native platform polymemarket. This platform has dealt with billions of dollars in efforts in 2024, largely tied to the outcome of the US presidential election.
The platform became so popular that the polyming field was recently reported to weigh a potential deal that appreciated the company at $ 9 billion, a sharp increase from its $ 1 billion valuation just a few months ago.
While the polyming field rose to fame, the market was somewhat narrowed. Now, with Robinhood’s US and potentially global offerings, it may open the prediction market for a larger group of dealers.
Coindesk has reached Robinhood for comments.
