Robinhood collaborates with Kalshi, a CFTC-regulated platform, to launch a prediction markets hub allowing users to trade event contracts on significant global events.
Partnership with Kalshi
Robinhood and Kalshi have joined forces to create a prediction markets hub where users can trade on events like sports, political events, and Federal Reserve interest rate decisions. Robinhood shares rose 7.1% following the announcement. Kalshi expressed their excitement on social media, noting that the partnership will bring event trading to 25 million users.
How Kalshi Differs from Competitors
Kalshi is a centralized platform regulated by the CFTC, unlike competitors like Polymarket, which use decentralized technologies built on Ethereum and Polygon, leveraging smart contracts. Kalshi operates under traditional U.S. financial regulations.
Expansion of Robinhood's Initiatives
Aside from its partnership with Kalshi, Robinhood is actively expanding its cryptocurrency initiatives. In 2024, they extended services into Europe, allowing users to buy and sell cryptocurrencies, and added features like crypto transfers and staking rewards. The company also plans to introduce crypto futures trading in the U.S.
With the launch of prediction markets, Robinhood aims to capitalize on the growing popularity of platforms like Polymarket, according to VP JB Mackenzie, highlighting the importance of prediction markets in news, economics, politics, sports, and culture.
