Robinhood moves into prediction markets with FTX-linked acquisition

Robinhood and Susquehanna International Group are making a power move into prediction markets by acquiring a 90% stake in LedgerX — one of the few solvent companies tied to FTX after its 2022 collapse. This deal drops just hours after Robinhood announced they're launching a futures and derivatives platform with prediction market options. Talk about timing.

Robinhood initially reported acquiring a majority stake in MIAXdx — the CFTC-licensed exchange and clearinghouse that was previously known as LedgerX. MIAX (Miami International Holdings) bought LedgerX for $50 million during FTX's bankruptcy fire sale in 2023, and they'll keep a 10% stake in the company post-acquisition.

This acquisition puts Robinhood on a direct collision course with prediction market giants Kalshi and Polymarket. Prediction markets absolutely exploded in 2024, driven hard by election betting mania.

Since a federal court cleared Kalshi to offer event contracts tied to US elections in October 2024, this space has been attracting massive investments from crypto and traditional players alike.

Kalshi just hit an $11 billion valuation last week after a funding round led by Sequoia Capital and CapitalG. Meanwhile, Polymarket scored its own regulatory win on Tuesday when the CFTC approved them to operate a US-intermediated trading platform.

Even Coinbase is reportedly building a prediction markets platform backed by Kalshi. Everyone wants a piece of this action.

Wall Street loved the move — Robinhood shares surged about 8% following the announcement, hitting $125.24 at publication time. When the market speaks, you listen.