Robinhood and Crypto.com are both racing to own the prediction markets space, and the numbers suggest they may be onto something.
The Wall Street Journal reports that the two platforms are in active discussions to expand their presence in prediction markets, the fast-growing corner of finance where users trade contracts tied to real-world outcomes like elections, sports, and economic indicators.
How each company is building its position
Robinhood moved first, launching its Prediction Markets Hub in 2025 through a partnership with Kalshi, one of the few CFTC-regulated event contract exchanges in the country.
Around 11 to 12 billion contracts were traded through the hub in its launch year, a volume that pushed prediction market revenue into genuine competition with Robinhood’s crypto trading segment in certain quarters.
Robinhood also partnered with Susquehanna, the quantitative trading firm, to develop a CFTC-licensed futures and derivatives exchange of its own, which became operational in early 2026.
Crypto.com launched its own CFTC-regulated prediction markets platform, called OG, in February 2026, positioning itself as a direct competitor in the event-contracts space alongside Robinhood and the existing regulated players.
The regulatory picture is complicated
Multiple U.S. states have pushed back on sports-related event contracts specifically, with some regulators arguing the products constitute unlicensed gambling. Both Robinhood and Crypto.com have faced legal complications on this front.
In December 2025, Robinhood, Coinbase, and other players formed the Coalition for Prediction Markets, a lobbying and advocacy group aimed at pushing for consistent federal oversight rather than leaving products subject to a patchwork of state-level interpretations.
What this means for investors and traders
Robinhood’s hub data suggests that when prediction markets are embedded inside a retail brokerage with millions of existing users, engagement extends across event categories well beyond elections.
The risk for both platforms is concentrated at the state level, where the legal exposure around sports contracts remains unresolved. A series of adverse rulings could force product modifications or market exits in key states. How the Coalition for Prediction Markets fares in shaping federal policy over the next 12 to 18 months will likely determine whether the current growth trajectory continues or hits a structural wall.