Robinhood will launch a new derivatives exchange to drive the development of prediction markets.

According to Odaily, Robinhood has announced a new joint venture with Susquehanna International Group (SIG) to launch a futures, derivatives exchange and clearinghouse, deepening its presence in the prediction market space.

Robinhood announced on Tuesday that the joint venture will be majority-owned by Robinhood Markets Inc., and plans to acquire MIAXdx, the Derivatives Clearing Organization, and the Swap Execution Facility from Miami International Holdings (MIAX). MIAXdx is a designated contract market authorized by the Commodity Futures Trading Commission (CFTC).

According to the plan, MIAX will retain a 10% stake in the new exchange. Susquehanna will serve as the "first-day liquidity provider," with more liquidity partners joining later. The new exchange is expected to offer futures and derivatives products, including prediction markets, and is scheduled to begin operations in 2026.

JB Mackenzie, Vice President and General Manager of Futures and International Business at Robinhood, said that Robinhood sees strong customer demand for prediction markets and that its investment in infrastructure will enable it to provide customers with a better experience and more innovative products.

Robinhood notes that prediction markets have become its fastest-growing product line by revenue, with over 1 million customers trading more than 9 billion contracts to date. In March, Robinhood partnered with Kalshi to launch a prediction market hub within its app through Robinhood Derivatives, covering topics such as US politics, macroeconomic indicators, and sports. (TheBlock)