Robinhood Markets, Inc. (NASDAQ:HOOD) ticked higher in Wednesday's premarket after unveiling a new futures and prediction markets venture.
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The move, paired with the recently reported surge in customer growth and platform assets in October, underscores the company's broader push to deepen derivatives trading.
The company plans an independent exchange and clearinghouse for futures, options and prediction contracts, with Robinhood controlling the joint venture and supplying retail order flow, while Susquehanna International Group provides day-one liquidity and market making.
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Prediction Markets Emerge As Key Growth Engine
Robinhood said prediction markets now represent its fastest-growing revenue contributor, only a year after launch.
More than 1 million customers have traded roughly 9 billion contracts, underscoring a strong appetite for event-linked speculation.
To accelerate the rollout, the joint venture will acquire MIAXdx, a unit of Miami International Holdings Inc. (NYSE:MIAX) that already holds U.S. Commodity Futures Trading Commission licenses as a Designated Contract Market, Derivatives Clearing Organization and Swap Execution Facility.
Under the deal, Robinhood will control the new entity, while MIAX retains a 10% equity stake.
Susquehanna will act as a cornerstone liquidity provider, and the venture expects to add more market makers to support execution quality for retail and institutional users.
The coming exchange intends to handle order flow from Robinhood's existing derivatives arm, as well as other Futures Commission Merchants. The group aims to introduce more contracts quickly, leveraging its own infrastructure instead of relying solely on outside venues.
Customer Demand Drives Infrastructure Push
"Robinhood is seeing strong customer demand for prediction markets, and we're excited to build on that momentum," said JB Mackenzie, the firm's vice president and general manager of futures and international. He said investing directly in core exchange plumbing should allow faster innovation and a smoother experience.
The partners expect the new platform to begin operating in 2026, subject to regulatory approvals and closing conditions.
Robinhood cautioned that licensing, integration work and other uncertainties could affect timing and outcomes, and pointed investors to its Securities and Exchange Commission filings for risk details.
Robinhood's Broader Product Suite
Beyond prediction markets, Robinhood offers commission-free trading in stocks, options, futures and cryptocurrencies, along with retirement accounts, cash-earning products, and managed portfolios through Robinhood Strategies.
The company, based in Menlo Park, California, continues pitching itself as a low-cost gateway for newer investors.
October 2025 Operating Highlights
Robinhood Markets ended October with 27.1 million funded customers, up about 210,000 month-over-month and 2.6 million year-over-year.
Total platform assets reached $343 billion, rising 3% from September and 115% from October 2024.
Net deposits were $5.6 billion in October, a 20% annualized growth rate versus September assets and $68.7 billion over the past year, reflecting 43% annual growth.
HOOD Price Action: Robinhood Markets shares were up 2.01% at $117.89 during premarket trading on Tuesday, according to Benzinga Pro data.
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