Robinhood eyes Crypto.com for prediction markets boost
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- Robinhood is in talks with Crypto.com to supply yes-or-no event contracts for its prediction markets hub, per the Wall Street Journal citing people familiar with the matter.
- Robinhood launched its prediction markets hub in March 2025, initially facilitated by Kalshi to comply with CFTC requirements, and later added ForecastEx and Rotella as additional contract providers.
- Bernstein analysts raised their price target on Robinhood (HOOD) to $160 from $130 per share, citing the company's outlook for prediction markets and tokenized equities.
- Bernstein estimated Robinhood's revenue including prediction markets could reach $1.7 billion by 2028, and said in April that total prediction market volumes could hit $1 trillion by 2030.
- Prediction market platforms face ongoing legal battles between state and federal authorities, with the CFTC claiming 'exclusive jurisdiction' over event contracts while gaming authorities in multiple states have filed lawsuits to block or restrict their activities.
Why it matters: Robinhood's push to add Crypto.com would diversify its prediction markets infrastructure beyond Kalshi, ForecastEx, and Rotella — a growth thesis Bernstein backed by hiking its HOOD price target to $160. The expansion runs straight into the unresolved CFTC-vs-state legal fight, where courts haven't yet determined who gets to police these event contracts.
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