Robinhood Explores Expansion Into Prediction Markets With Crypto.com Partnership

Robinhood Explores Expansion Into Prediction Markets With Crypto.com

Major retail investment platform Robinhood is engaged in discussions with leading cryptocurrency exchange Crypto.com regarding the potential integration of prediction market services, according to reporting from the Wall Street Journal. The conversations, which involve people directly familiar with the negotiations, focus on Robinhood potentially incorporating yes-or-no event contracts supplied by Crypto.com into its existing platform ecosystem. This move signals continued mainstream adoption of prediction market infrastructure among major fintech players.

Robinhood’s Prediction Markets Strategy

Robinhood established its dedicated prediction markets hub in March 2025, moving into this growing segment as digital asset adoption accelerated across retail investors. To navigate the complex regulatory environment surrounding event contracts in the United States, Robinhood initially partnered with Kalshi, a regulated prediction market platform explicitly designed to operate within US Commodity Futures Trading Commission (CFTC) guidelines and comply with federal derivatives regulations.

Since the hub’s launch, Robinhood has expanded its provider relationships to include additional platforms—ForecastEx and Rotella—reflecting a deliberately diversified approach to sourcing prediction market liquidity and products. The reported discussions with Crypto.com represent a logical extension of this multi-partner strategy, bringing another major player in the digital assets space into Robinhood’s infrastructure. Such a partnership could significantly broaden the range and quality of event contracts available to Robinhood’s growing user base.

Bullish Analyst Outlook and Revenue Projections

The Robinhood-Crypto.com conversations arrive against a backdrop of increasingly positive market analysis and investor enthusiasm. Investment bank Bernstein recently elevated its price target for Robinhood (HOOD) equity from $130 to $160 per share, anchoring this significant upgrade largely on the company’s strategic positioning in prediction markets and tokenized equities—two segments that analysts believe could drive substantial revenue growth over the coming years.

Bernstein specifically forecast that revenue generated by Robinhood through prediction markets operations could potentially exceed $1.7 billion by 2028. Looking at the sector as a whole, Bernstein analysts previously projected that total volumes across the prediction markets industry could reach $1 trillion annually by 2030, indicating the massive scale of opportunity emerging in this nascent but rapidly growing market segment.

Regulatory Challenges Persist

Despite strong growth prospects and bullish forecasts, prediction market platforms continue operating in a contested and evolving regulatory environment. The CFTC has declared that it possesses exclusive jurisdiction over event contracts, a stance that creates ongoing tension with other authorities seeking oversight authority. Simultaneously, state-level gaming regulators in multiple jurisdictions have filed lawsuits attempting to restrict or prohibit prediction market operations within their territories, fragmenting the legal landscape that companies must strategically navigate.

Against this backdrop of regulatory complexity, the proposed collaboration between Robinhood and Crypto.com underscores the importance of strategic partnerships in addressing compliance obligations while scaling operations. As traditional finance and crypto infrastructure increasingly converge, such alliances point toward a future where digital asset platforms and conventional fintech companies operate within integrated ecosystems. This convergence between mainstream trading platforms and crypto exchanges could accelerate adoption of prediction markets and strengthen the entire digital assets ecosystem.

Source: Wall Street Journal, via Cointelegraph. Not financial advice.