Mentioned:
Prediction markets on Robinhood have exploded in popularity. Which is exactly why Robinhood is buying a futures exchange and clearinghouse next.
What’s happening:
- Robinhood (NASDAQ: HOOD) has entered into a new deal to buy 90% of regulated futures exchange and clearinghouse MIAXdx
Why it matters:
- The new acquisition will give Robinhood the ability to meaningfully scale up their prediction markets business without needing to build their own exchange and win licensing approvals
Going deeper:
- Susquehanna International Group will act as both a partner and liquidity provider for Robinhood as part of their purchase of MIAXdx
- Robinhood’s prediction market business has been exploding since first forming a partnership with Kalshi with more than 9 billion individual event contracts being traded since launching
The intrigue:
- MIAXdx will continue to own a 10% equity stake following the successful completion of the acquisition
