Robinhood to Launch Its Own Derivatives and Futures Exchange

Robinhood is expanding into prediction markets by launching its own derivatives and futures exchange. This move is designed to strengthen its position in a sector valued at $9 billion. 

This new move comes as Robinhood makes other changes to its business and prepares to play a bigger role in the financial technology space.

Robinhood’s New Futures Exchange to Launch in 2026

As announced earlier today, Robinhood said it will start its own derivatives and futures exchange through a joint venture. The exchange will operate independently but will be fully supported by Robinhood. 

Susquehanna International Group will be the first to provide liquidity, making sure the market is active from the start. More partners are expected to join later to make the markets stronger and more reliable. 

This move shows Robinhood’s effort to grow in prediction markets. In its first year of offering prediction-based trading, users exchanged more than 9 billion contracts, with participation from over 1 million customers. 

The new exchange is expected to work with other futures commission merchants as well, widening its network and capability. Operations are planned to begin in 2026.

Strong Financial Performance Reinforces Robinhood Ambition

The company’s latest financial results show a solid foundation for this expansion. Robinhood reported a net income of $556 dollars for the third quarter. This is more than three times the amount recorded in the same period last year. 

Total revenue climbed to a record $1.27 billion. This figure includes around $25 million generated from market activity through its partnership with the prediction platform Kalshi.

Kalshi has been busy making moves of its own. The company formed a partnership with Coinbase, which now handles custody and settlement using the USDC for Kalshi’s platform.

Broader Industry Movement Toward Prediction Markets

The interest in prediction markets reaches far beyond Robinhood. Several major players in the crypto and fintech sectors are working to expand their involvement.

Robinhood recently added a wider variety of event contracts to its app. These now include markets tied to politics, entertainment, and technology. Other companies are moving in similar directions. Gemini has submitted filings with regulators to expand its offerings to include prediction markets. Coinbase is reportedly developing its own platform as well.

Galaxy Digital has entered early testing to provide liquidity to both Polymarket and Kalshi. If user activity continues to grow, the company plans to scale its support. Meanwhile, Crypto.com has introduced its own platform in partnership with Trump Media.

In another important development, Polymarket issued an update stating that it has received an amended order from the United States Commodity Futures Trading Commission. 

This approval allows Polymarket to operate as a fully intermediated United States exchange. With this change, the platform can officially onboard customers in the country under the same standards used by other regulated marketplaces.