Robinhood eyes Crypto.com partnership to scale prediction markets

The potential deal would allow Robinhood users to trade yes-or-no contracts supplied by Crypto.com, according to reports. While neither company has formalized an agreement, the discussions underscore a broader shift in Robinhood’s strategy. Rather than depending on a single source for event-based derivatives, the firm is aggressively building a multi-exchange network to ensure product availability and competitive pricing.

This expansion comes as the rivalry between Robinhood and Kalshi intensifies. Once simple distribution partners, the two entities now increasingly clash as they vie for retail market share. Bernstein analysts recently underscored the financial stakes, raising their Robinhood price target to $160 and estimating that prediction-market revenue could hit $1.7 billion by 2028.

However, the path forward remains clouded by ongoing regulatory friction. The Commodity Futures Trading Commission is currently locked in legal battles with several states, including Wisconsin and New York, over whether event contracts constitute federal commodity derivatives or state-regulated gambling. As Robinhood integrates additional suppliers like Crypto.com, it must navigate this fractured oversight landscape, where local regulators continue to challenge the platform's ability to offer sports-linked and political contracts to retail users.