Robinhood shares rose more than 10% on Wednesday after the company unveiled plans to introduce its own futures and derivatives exchange, deepening its expansion into prediction markets—now one of its fastest-growing revenue streams.
The new strategy positions Robinhood to list contracts directly rather than rely solely on third-party offerings, a change that could significantly broaden its product range.
Until now, the company has leaned heavily on its partnership with Kalshi, which has generated over half of the prediction market platform’s trading volume.
By establishing its own exchange, the company gains more control over listings and revenue.
Robinhood announced that it will partner with Susquehanna International Group to acquire a 90% stake in MIAXdx, formerly known as LedgerX.
Miami International Holdings will retain the remaining 10%.
Robinhood will run the entity, while Susquehanna will provide initial liquidity.
Shares closed at $128.20, up nearly 11%, making the stock the top performer in the S&P 500 for the session.
The company’s stock has surged 215% this year, ranking as the second-best performer in the index.
Robinhood’s push into prediction markets began in March with its launch of Kalshi-powered contracts just ahead of the NCAA basketball tournament.
Since then, trading activity has accelerated rapidly.
More than 9 billion contracts have traded on Robinhood’s platform, and over 1 million users have participated.
The company recorded 2.3 billion event contracts traded in the third quarter alone, more than double the previous quarter.
“Robinhood is seeing strong customer demand for prediction markets, and we’re excited to build on that momentum,” said JB Mackenzie, the general manager for futures and international.
Analysts see the new business as a major revenue opportunity.
Bernstein estimates the prediction market segment is on pace to generate more than $300 million annually.
“With HOOD already accounting for more than 50% of Kalshi market volumes, we believe HOOD wants to leverage its distribution edge to claim a higher share of the market revenue pool,” Bernstein analyst Gautam Chhugani wrote.
The MIAXdx acquisition also provides CFTC licenses, enabling Robinhood to offer traditional futures and options products.
Cantor Fitzgerald analysts said this regulatory status will allow the company to operate with greater autonomy.
The move puts Robinhood in competition with crypto platforms such as Polymarket and Crypto.com, both of which have aggressively expanded their prediction market offerings.
Polymarket recorded $3.58 billion in trading volume over the past month, while Kalshi saw $4.47 billion.
Gemini is seeking approval to launch its own platform, and Coinbase is reportedly exploring the sector.
Robinhood expects its new exchange to begin operations in 2026 once the acquisition closes.
The company plans to open access not only to its own customers but also to other brokerages.
