Robinhood & Susquehanna to Launch New Exchange

Robinhood has unveiled a new partnership with Susquehanna International Group that will expand the two companies’ presence in the prediction markets space. The tie-up comes amid rapidly increasing demand for event contracts and other betting alternatives.

Robinhood Expands Its Prediction Markets Presence

According to the official announcement, Robinhood and Susquehanna will launch a CFTC-Licensed exchange and clearinghouse. The joint venture will independently offer futures and derivative products, serving as a Futures Commission Merchant (FCM).

Robinhood said that the independent exchange will be managed by a joint venture. Robinhood Markets will serve as the new entity’s controlling partner. As such, Robinhood Markets will underpin the business with strong retail demand and distribution.

Susquehanna International Group, on the other hand, will serve as a key partner and day-one liquidity provider of the new platform. Robinhood added that more liquidity providers will be added to “ensure the best possible execution for customers.”

Robinhood added that the new venture will acquire CFTC-licensed designated contract market MIAXdx to accelerate the delivery of its services. MIAX will hold a 10% equity stake in the new exchange.

The launch extends Robinhood’s presence in the prediction markets space, allowing it to continue capitalizing on the strong demand for such products. According to the official announcement, the introduction of a futures and derivatives exchange and clearinghouse will better position the business to deliver innovative products to its customers.

New Opportunities for Robinhood and Its Customers

Robinhood’s vice president and general manager of futures and international, JB Mackenzie, commented on the launch, confirming that it is Robinhood’s way to build on its momentum and respond to the strong demand for prediction markets. Mackenzie explained that the new venture will significantly bolster the overall business.

Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers.

JB Mackenzie, VP & GM of futures and international, Robinhood

Robinhood added that prediction markets have quickly become its fastest-growing product in terms of revenue. Within a year, over a million customers have traded 9 billion event contracts on the platform. The new launch will therefore introduce a “robust, institutional-grade exchange to the market,” ensuring better experiences for customers and an even greater selection of products.

At the same time, the new exchange will provide Robinhood with greater flexibility, allowing it to develop faster and deliver more contracts and services to users.

Robinhood concluded that the new exchange should go live in 2026.

In the meantime, some state authorities and industry stakeholders continue to push back against the prediction markets format, arguing that it constitutes unregulated betting. Nevada just secured a court ruling prohibiting Kalshi from offering its products in the state.