Robinhood Eyes Acquisitions as Prediction Markets Soar
Robinhood Markets is exploring potential acquisitions in the booming prediction markets sector. These markets, popularized during the U.S. elections, now allow bets on diverse events. Robinhood has partnered with Kalshi and others to harness this trend, furthering its transformation into a comprehensive financial services firm.
Robinhood Markets is considering potential acquisitions in the rapidly expanding prediction markets sector, a top executive told Reuters. This move comes as global interest in this once-niche asset class rises sharply.
Vice President JB Mackenzie stated that Robinhood is balancing between potential acquisitions and leveraging the company's strong engineering talent to create innovative products. Prediction markets gained popularity during the U.S. presidential election, now evolving into an asset class for wagers on various topics through event contracts.
With new entrants like Underdog and significant investments such as NYSE-owner Intercontinental Exchange's stake in Polymarket, the competition intensifies. Robinhood's collaboration with Kalshi and Interactive Brokers reflects its growth strategy, as its market value soars, cementing its place in the S&P 500 index.
(With inputs from agencies.)
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