Robinhood (HOOD) Launches Prediction Market Platform Targeting Polymarket's (PM) Success

After the success of crypto-based platform Polymarket trading venue Robinhood (HOOD) is now opening a prediction market on its platform

Crypto-based platform Polymarket trades a variety of instruments on its platform, including those related to U.S. elections and politics, which drew scrutiny over the sums being wagered and the identities of the bettors.

After the success of crypto-based platform Polymarket trading venue Robinhood (HOOD) is now opening a prediction market on its platform, available through CFTC-regulated exchange Kalshi, the company said, with contracts rolling out today.

The company's prediction markets hub will allow customers to bet on event outcomes, the HOOD announced in a press release.

It's another competitor to Polymarket, the world’s largest predictions market, which exploded in popularity last year amid the U.S. presidential election and any number of other high- and lower-profile news events. The rise in popularity triggered intense scrutiny over the platform, which according to an analysis by NBC News, attracted over $3.6 billion in bets just for the presidential election.

Some questioned the identities behind the bets and whether results on the platform may have even swayed the election result in a certain direction. Polymarket CEO Shayne Coplan’s New York City apartment was also raided by the FBI, who seized his phone and other electronic devices.

Robinhood said that it has been speaking with the U.S. Commodity Futures Trading Commission (CFTC) in recent weeks.

“We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture,” said JB Mackenzie, VP & GM of Futures and International at Robinhood.

To kick off the product launch, traders will be able to bet on the potential upper bound of the target fed funds rate in May, as well as the upcoming men’s and women’s College Basketball Tournaments, Robinhood said.

Shares of the trading app were up 2.3% on Monday, at $40.17.