Robinhood, Susquehanna Strike Deal to Acquire LedgerX For Prediction Market Expansion
Robinhood Markets and Susquehanna Group have agreed to purchase 90% of regulated alternate LedgerX from Miami International Holdings, in a deal that pushes the US retail buying and selling big deeper into event-driven crypto markets as curiosity in prediction platforms accelerates.
The companions plan to run LedgerX as an impartial alternate by means of a brand new three way partnership, with Robinhood because the controlling companion.
Miami International Holdings will maintain a strategic 10% stake. Financial phrases of the deal stay undisclosed.
LedgerX as soon as sat contained in the empire of collapsed crypto alternate FTX. Miami International acquired it out of FTX’s chapter property in 2023 for $50m and housed it beneath its umbrella.
The new enterprise will now purchase MIAXdx, the LedgerX entity that carries approvals as a Designated Contract Market, Derivatives Clearing Organization and Swap Execution Facility, giving Robinhood and Susquehanna a ready-made regulatory platform.
New Venue Targets Growing Appetite For Prediction Markets
Robinhood stated the deal will pave the way in which for a futures and derivatives alternate and clearinghouse constructed with prediction markets in thoughts. The alternate will serve Robinhood Derivatives and different futures fee retailers, and is predicted to start operations in 2026, opening a brand new institutional-grade venue for merchants who need to wager on real-world occasions by means of crypto-style contracts.
“Robinhood is seeing sturdy buyer demand for prediction markets, and we’re excited to construct on that momentum,” stated JB Mackenzie, vp and basic supervisor of futures and worldwide at Robinhood. “Our funding in infrastructure will place us to ship a good higher expertise and extra revolutionary merchandise for patrons.”
Internally, prediction markets have already develop into certainly one of Robinhood’s key development engines.
The firm says that within the first 12 months since launch, prospects traded about 9b contracts throughout greater than 1m accounts, turning occasion contracts into its fastest-growing product line by income and giving it confidence to spend money on a devoted alternate and clearing stack.
Susquehanna Joins As Liquidity Anchor For New Prediction Venue
Susquehanna, one of many largest proprietary buying and selling and market-making corporations in world derivatives, will be part of as a day-one liquidity supplier. The three way partnership plans to add extra market makers over time, aiming to maintain spreads tight and execution high quality aggressive for each Robinhood’s retail customers and institutional purchasers that entry the venue by means of different intermediaries.
The deal lands as prediction markets transfer from area of interest crypto corners into mainstream finance within the US. Interest surged after a federal court docket threw out a Commodity Futures Trading Commission prohibition on election-betting final 12 months, opening the door for regulated platforms to record contracts tied to politics and different real-world outcomes.
Traditional market infrastructure is following the cash. Intercontinental Exchange, the proprietor of the New York Stock Exchange, agreed in October to invest up to $2b in Polymarket.
Kalshi, one other heavyweight within the sector, recently drew a valuation of about $11b in a fundraising spherical, in accordance to a TechCrunch report, signalling sturdy investor urge for food for event-driven buying and selling venues.
Tech Giants Bring Visibility To Crowd-Priced Event Markets
Large derivatives exchanges are additionally circling the house. CME Group and Cboe have each outlined plans to enter prediction markets, betting that occasion contracts can sit alongside extra established merchandise akin to fairness index futures and listed choices.
Crypto-native establishments are positioning themselves as liquidity backbones for this new market construction. Mike Novogratz’s Galaxy Digital is in talks with Polymarket and Kalshi about appearing as a market-maker, posting bids and affords that may deepen order books and make it simpler for giant merchants to transfer out and in of positions tied to every part from elections to macroeconomic releases.
Big expertise platforms are including one other layer of visibility. Google Finance recently said it will begin showing live data from Polymarket and Kalshi, so customers who ask about future occasions shall be in a position to see how crowd odds are evolving in actual time, alongside extra conventional market knowledge.
For Robinhood and Susquehanna, the LedgerX deal affords a shortcut into this rising ecosystem, combining a crypto-savvy retail base, institutional market making and a completely licensed derivatives venue.
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