Robinhood Markets and Susquehanna Group have agreed to acquire 90% of LedgerX from Miami International Holdings. This deal strengthens Robinhood’s presence in the growing event-driven crypto markets.
The new joint venture will operate LedgerX as an independent exchange. Robinhood will be the majority partner, while Miami International Holdings retains a 10% stake.
LedgerX was originally part of the now-defunct FTX exchange. Miami International Holdings bought it for $50 million in 2023 from the FTX bankruptcy estate. The new venture now inherits LedgerX’s regulatory approvals, including as a Designated Contract Market and Derivatives Clearing Organization.
Robinhood to launch futures exchange for prediction markets
Robinhood said the plan is to build a futures and derivatives exchange focused on prediction markets. This exchange will allow trading of crypto-style contracts tied to real-world events, including elections and other significant occurrences. It’s expected to begin operations in 2026.
The decision comes after strong customer demand for prediction markets. JB Mackenzie, Robinhood’s Vice President of Futures and International, highlighted that in the first year of offering event contracts, customers traded about 9 billion contracts across more than one million accounts.
The rise of prediction markets follows a federal court ruling in 2023 that lifted a ban by the Commodity Futures Trading Commission (CFTC) on election betting. This ruling made it possible for the regulated platforms to provide contracts on events like political elections and economic developments.
Susquehanna, a leading market-making firm, will act as the major liquidity provider. The joint venture intends to expand the list of market makers in due course of time in order to maintain tight spreads and execution competitiveness for the benefit of the retail and institutional clients.
With this acquisition, Robinhood and Susquehanna receive a fully licensed platform to enter the rapidly growing sector of event-driven trading. LedgerX’s existing infrastructure enables them to quickly gain access to this market.
This change is part of a larger trend in the financial world that has seen traditional institutions express interest in prediction markets. The Intercontinental Exchange, owner of the New York Stock Exchange, has agreed to invest up to $2 billion in Polymarket, one of those competitors.
Another major player, Kalshi, recently raised an $11 billion valuation. The large funding amount indicates the increasing interest of investors towards the platforms focusing on event-driven trading.
Google Finance to integrate real-time prediction market data
Crypto-native institutions are posing as liquidity providers for the market. Galaxy Digital, led by Mike Novogratz, is in talks with Polymarket and Kalshi to offer liquidity and boost order books for larger trades related to events such as elections and economic reports.
Even tech giants are paying attention. Google Finance has announced the plans to include live data from a prediction market site like Polymarket and Kalshi so that its users can have real-time odds on future events.
The LedgerX deal gives Robinhood and Susquehanna a competitive advantage in the prediction markets space. They now have a fully regulated exchange and a crypto-savvy retail base, putting them in a position to take market share as the sector grows.
This acquisition comes at an important moment as prediction markets are moving from niche spheres in the crypto space to the mainstream. The deal positions Robinhood to be a leader in the growing event-driven trading space and capitalize on growing demand for platforms that enable betting on real-world events.