Robinhood CEO Vlad Tenev stated that crypto-linked event contracts are capturing a significant portion of the platform's prediction market business. He anticipates that sports-related wagers will become a minority segment within the next few years as crypto contracts continue to expand.
The prediction market sector has seen rapid growth in the US, with companies like CME, Kalshi, Coinbase, and various decentralized platforms competing for market share. While sports-linked contracts face legal scrutiny, including lawsuits from New York and Baltimore against Kalshi and Polymarket, crypto-linked contracts have largely avoided these regulatory challenges.
Robinhood is actively developing its infrastructure in this space. The company formed a joint venture with Susquehanna to acquire the crypto exchange MIAXdx, formerly known as LedgerX. This move is intended to support the company's own prediction market operations.
According to Tenev, prediction markets currently represent the fastest-growing revenue line for Robinhood. The platform recorded approximately nine billion event contracts traded over the past year, reflecting the company's broader strategy to expand its financial services offerings.
