Robinhood and Crypto.com Discuss Prediction Markets Expansion
Vexoda Newsroom
Robinhood is reportedly considering partnering with Crypto.com to expand its prediction markets, despite ongoing legal challenges. This move could significantly impact the crypto market.
In a recent development, Robinhood, the popular cryptocurrency and stock trading app, has been reported to be in talks with Crypto.com about expanding their existing prediction markets offering. According to a report by The Wall Street Journal, this potential partnership would involve placing yes-or-no event contracts supplied by Crypto.com.
Robinhood launched its prediction markets hub in March 2025, initially working with Kalshi and later using ForecastEx and Rotella to comply with regulatory requirements from the US Commodity Futures Trading Commission (CFTC). The company's expansion into this space is seen as a strategic move given the significant potential revenue it could generate.
The market opportunity appears substantial. Bernstein analysts recently raised Robinhood’s price target on its stock, citing predictions that prediction markets and tokenized equities could bring in $1.7 billion by 2028. Additionally, these platforms are expected to reach a volume of $1 trillion by 2030 according to industry forecasts.
However, the expansion into this market is fraught with legal challenges. The US CFTC claims exclusive jurisdiction over event contracts offered in prediction markets, while gaming authorities in many states have filed lawsuits attempting to block or restrict these activities. These ongoing disputes highlight the complex regulatory landscape surrounding such platforms.
The potential partnership between Robinhood and Crypto.com could reshape how prediction markets operate within the crypto space. If successful, it would provide a clear path for compliance and potentially accelerate adoption among users who are already familiar with both companies’ services.
Traders should closely monitor this development as it has broader implications for the crypto market. The success or failure of such partnerships will likely influence how other firms navigate similar regulatory challenges in expanding their offerings.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.