Robinhood and Susquehanna International Group are making a significant push into the fast-growing prediction-market space after taking over LedgerX, a regulated U.S.
derivatives exchange previously owned by FTX. The move underscores rising competition among major financial platforms as they position themselves to dominate a market that blends trading, forecasting, and emerging regulatory frameworks.
The acquisition, first highlighted by Reuters, signals a strategic expansion for both companies.
LedgerX gives them access to a fully licensed derivatives venue at a time when event-based markets—where users trade on outcomes such as elections, economic indicators, or sports events—are gaining mainstream traction.
With regulators showing renewed openness to structured prediction markets, firms see an opportunity to create new revenue streams and attract younger, trading-savvy audiences.
Bloomberg reports that the two firms are effectively escalating a prediction-market “arms race.” Robinhood in particular is expected to use its massive retail user base and product integration capabilities to accelerate adoption.
By embedding event-driven trading directly into its existing app ecosystem, the company could transform prediction markets from a niche segment into a high-engagement product category available to millions.
Analysts at Bernstein, via reporting from The Block, note that Robinhood’s biggest advantage is distribution. With an active user base that dwarfs most crypto-native prediction platforms, Robinhood can onboard new participants quickly and cheaply.
Bernstein also points out that Coinbase is preparing its own prediction-market move in December, setting up a competitive showdown among some of the biggest names in U.S. trading.
The broader trend reflects a shift in how financial firms view prediction markets. Once considered fringe, they are increasingly recognized for their ability to aggregate real-time sentiment on political, economic, and cultural events.
For platforms like Robinhood, the appeal lies not only in trading fees but also in higher user engagement, gamified experiences, and diversified revenue models.
For Susquehanna, a global trading powerhouse with deep expertise in options and market-making, LedgerX provides a regulated sandbox to expand sophisticated event-based products.
Their involvement also signals institutional validation for a sector long dominated by smaller crypto platforms.
As Coinbase gears up for its December entry, the next few months could reshape the competitive landscape.
With regulatory frameworks evolving and consumer interest rising, prediction markets are positioning themselves as one of the most closely watched innovations heading into 2025.
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