Robinhood Announces Joint Venture to Build Regulated Exchange

Robinhood has advanced its push into prediction markets by forming a joint venture with Susquehanna International Group to build a new futures and derivatives exchange expected to launch in 2026. The company said the venture will acquire MIAXdx, a designated contract market, clearing organization, and swap execution facility currently owned by Miami International Holdings. 

Under the plan, Susquehanna will act as a day-one liquidity provider, with more partners to follow once the exchange is operational. Robinhood Markets Inc. will control the new entity, while MIAX will hold a 10% equity stake.

The platform is expected to list a range of futures and derivatives, including products tied to prediction markets. Robinhood said demand for prediction market apps continues to accelerate, noting that over 1 million customers have traded more than 9 billion contracts.

"Robinhood is seeing strong customer demand for prediction markets, and we’re excited to build on that momentum," JB Mackenzie, VP and general manager of futures and international at Robinhood, said in a statement. “Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers.”

The initiative follows earlier integrations with Kalshi, which allowed Robinhood to offer markets on politics, economic indicators, and sports outcomes. Additional sports-related markets tied to the NFL and NCAA football were added later in the year. 

Analysts warn that rapid growth could elevate consumer credit risk

Financial institutions keeping an eye on consumer debt trends are worried about the rise of prediction markets and online betting. Bank of America (BofA) analysts noted that the sector's rapid growth could pose a credit risk for lenders. 

The analysts said that gambling losses could put a strain on finances, especially for younger men and people with lower incomes. They added that the ease of online participation and game-like interfaces encourage impulsive activity that could pressure credit performance.

The assessment follows broader growth in online betting since the Supreme Court struck down the federal ban on sports gambling. BofA analysts pointed to platforms such as Kalshi and Polymarket, which have popularized binary financial contracts tied to events ranging from sports to elections. 

Researchers at UCLA and the University of Southern California previously reported measurable financial effects in states that allow online betting, which we monitor in our legal sports betting states tracker. These included a nearly 1% decline in average credit scores over 4 years, a 28% increase in the likelihood of bankruptcy, and an 8% rise in debt sent to collections. 

BofA said lenders with exposure to financially stressed consumers, including Bread Financial Holdings, Upstart Holdings, and OneMain Holdings, may face elevated risks as participation grows.

Kalshi said its federally regulated exchange model provides transparent pricing and does not depend on customer losses. Polymarket reported that it recently cleared a final regulatory step toward reopening in the US after resolving a prior enforcement action.