Robinhood Explores Partnership with Crypto.com to Expand Prediction Markets

Robinhood Explores Partnership with Crypto.com to Expand Prediction Markets

Robinhood is reportedly in discussions with Crypto.com to include the exchange’s event contracts in its prediction markets hub. This potential collaboration aims to diversify Robinhood’s offerings and enhance its competitive edge.

Strategic Move for Broadened Market Access

The proposed arrangement would allow Robinhood users to trade yes-or-no contracts sourced from Crypto.com. This move could reshape the dynamics of Robinhood’s competition with Kalshi, as the platform seeks to reduce reliance on a single event contract provider. Currently, regulatory bodies at both state and federal levels are divided over the control of sports-related event contracts across the United States.

While no formal agreement has been announced, the discussions reflect Robinhood’s strategy to collaborate with multiple exchanges to ensure a broad and reliable market for its customers. A spokesperson noted, “We will continue to partner with multiple exchanges” to achieve this goal.

Competitive Landscape and Market Expansion

To date, Robinhood has launched its prediction markets hub, initially routing contracts through Kalshi, which is regulated by the Commodity Futures Trading Commission (CFTC). The service, which debuted in March 2025, includes betting on outcomes related to sports, politics, economics, and more. Recently, Robinhood expanded its partnerships to include ForecastEx and Rothera, a venture with Susquehanna International Group.

The integration of Crypto.com would further enhance this network, thereby maintaining product availability for users, especially during instances when other exchanges encounter market gaps or service issues.

Crypto.com’s Role in Prediction Markets

Crypto.com is already active in the prediction trading space through its Crypto.com Derivatives North America, which operates under CFTC regulations. The exchange has also launched OG Prediction Markets, which separately caters to similar needs. In recent developments, FanDuel Predicts has expanded its offerings with contracts powered by Crypto.com, indicating a growing trend in this sector.

Rising Tensions in the Regulatory Landscape

The potential Robinhood and Crypto.com partnership comes amidst ongoing legal disputes regarding the regulation of prediction markets. The CFTC maintains it has exclusive authority over commodity derivatives, leading to conflicts with various state regulators. For instance, Wisconsin has advanced complaints against multiple operators involved in event contracts, including Robinhood and Crypto.com, challenging their legality based on local statutes.

As competition among exchanges intensifies, the outcome of Robinhood’s negotiations with Crypto.com could significantly impact its market position, particularly in the wake of a Bernstein report projecting substantial revenue growth for Robinhood’s prediction markets.

In a recent update, Bernstein raised its share price target for Robinhood to $160, from $130, and estimates that the company may generate around $1.7 billion in prediction-market revenue by 2028.

While these discussions are ongoing, a formal confirmation that Crypto.com contracts will be offered through Robinhood remains unannounced. However, the negotiations illustrate Robinhood’s proactive approach to securing a wider array of event contract suppliers, crucial for staying competitive in a rapidly evolving market landscape.