Robinhood is reportedly in discussions with Crypto.com to expand its prediction markets business. According to a Wall Street Journal report on Friday, citing sources familiar with the matter, the stock and crypto trading app is looking at placing yes-or-no event contracts using Crypto.com as the exchange provider.
Robinhood first launched its prediction markets hub in March 2025. Initially, the company worked with Kalshi to meet regulatory requirements from the US Commodity Futures Trading Commission (CFTC). Later, it added ForecastEx and Rotella as additional partners. The reported talks with Crypto.com suggest the company wants to deepen its offerings in this area.
Analysts raise price target on Robinhood stock
Just days before the report surfaced, Bernstein analysts raised their price target on Robinhood (HOOD) stock from $130 to $160 per share. The analysts cited the company’s outlook for prediction markets and tokenized equities as a key reason. They predicted that Robinhood’s revenue from prediction markets alone could hit $1.7 billion by 2028. That’s a big number, but the prediction markets space is growing fast.
Bernstein had earlier said that volumes in prediction markets could reach $1 trillion by 2030. But it’s not all smooth sailing. Many of these platforms are facing legal challenges in the United States. The CFTC claims it has “exclusive jurisdiction” over event contracts. Meanwhile, gaming authorities in several states have filed lawsuits to block or restrict these activities. So there’s a tug-of-war between federal and state regulators.
Regulatory uncertainty remains a hurdle
Robinhood’s move into prediction markets comes with its own set of risks. The CFTC has been aggressive in asserting its authority over event-based contracts. At the same time, some states view these contracts as gambling and have tried to shut them down. It’s a messy legal landscape that might slow down adoption, at least in the short term.
But Robinhood seems undeterred. The company is clearly betting that prediction markets will become a major revenue stream. Partnering with Crypto.com could give it access to a larger pool of contracts and users. Crypto.com, for its part, has been expanding its own offerings and might see this as a way to tap into Robinhood’s retail base.
What this means for the broader market
If the deal goes through, it would be another sign that prediction markets are moving mainstream. Traditional finance and crypto are converging, and event contracts are a big part of that. Still, until the legal questions are resolved, there’s a chance things could slow down. The industry will be watching closely to see how regulators react.
For now, Robinhood is pushing ahead. The reported talks with Crypto.com show the company is serious about building out its prediction markets hub, even as the legal battles continue. It might be a while before we see a clear outcome, but the direction is clear.
