Robinhood to Launch Prediction Platform

Online broker Robinhood announced the launch of a prediction market within its app. Users will be able to enter contracts based on the outcomes of major global events.

According to Robinhood Vice President Jay B. Mackenzie, the new feature “will comply with existing regulations.”

Initially, the platform will offer contracts predicting the upper limit of the Fed’s target rate in May, as well as the results of men’s and women’s college basketball tournaments.

Mackenzie stated that the company views prediction markets as an important tool at the intersection of economics, politics, sports, and culture.

The prediction market will initially launch across the United States through the regulated CFTC exchange KalshiEX LLC.

“Over the past few weeks, we have worked closely with [the regulator] and look forward to continuing our collaboration to promote innovation in futures, derivatives, and cryptocurrency markets,” stated the Robinhood press release.

Back in March, the broker agreed to pay a $29.75 million fine to settle claims by the FINRA related to supervisory and regulatory compliance violations.

Earlier, the CFTC requested client data from the Coinbase exchange as part of an investigation into the Polymarket betting platform, initiated at the end of 2021.