Robinhood Markets and Susquehanna International Group are moving deeper into prediction markets with the acquisition of a company previously connected to the collapsed FTX exchange. According to a Reuters report on Tuesday, the two firms will acquire a 90% stake in LedgerX, one of the few solvent entities remaining after FTX’s 2022 bankruptcy. The deal was announced shortly after Robinhood revealed plans to launch a new futures and derivatives platform that will include prediction market products.
Robinhood initially disclosed that it was purchasing a majority stake in MIAXdx, a CFTC-regulated exchange and clearinghouse formerly known as LedgerX. MIAX acquired LedgerX for $50 million in 2023 during the fallout from FTX’s bankruptcy. Under the new agreement, MIAX will keep a 10% stake. MIAX CEO Thomas Gallagher said the retained equity position will give the company faster access to the rapidly growing prediction market sector.
The acquisition places Robinhood and Susquehanna in direct competition with leading prediction platforms such as Kalshi and Polymarket. Interest in prediction markets has accelerated throughout 2024, driven in part by rising demand for election-related contracts.
The sector has also seen significant investment. After a federal court cleared Kalshi to offer U.S. election contracts in October 2024, the company’s valuation reportedly climbed to $11 billion following a major funding round led by Sequoia Capital and CapitalG. Polymarket received a regulatory boost this week as the CFTC approved its application to operate a U.S.-intermediated platform. Meanwhile, Coinbase is reportedly developing its own prediction market service with backing from Kalshi.
Robinhood shares jumped nearly 8% on the Nasdaq following the acquisition announcement, trading at around $125.24 at the time of publication.
