1 month ago
Robinhood has launched a dedicated prediction marketplace hub that volition let users to commercialized contracts based connected the outcomes of cardinal planetary events.
According to a March 17 statement, the platform’s archetypal offerings see contracts tied to the Federal Reserve’s people involvement complaint for May and the men’s and women’s College Basketball Tournaments.
The steadfast explained:
“Each declaration represents an approximate probability betwixt 1% and 99%, with each cent efficaciously representing a 1% probability that the lawsuit volition occur. For example, if a declaration is priced astatine 53 cents, this tin beryllium interpreted arsenic a 53% probability that it volition hap according to that market.”
The work volition beryllium disposable to eligible customers crossed the US done KalshiEX LLC, a regulated speech overseen by the Commodity Futures Trading Commission (CFTC).
Over time, Robinhood plans to present contracts covering assorted topics, including fiscal markets, politics, and sports.
J.B. Mackenzie, Robinhood’s VP and GM of Futures and International emphasized the company’s committedness to innovation and highlighted the value of prediction markets successful capturing insights crossed finance, news, and culture.
The steadfast further explained that gathering a standalone prediction markets hub allows it to amended service its customers looking to prosecute with events that align with their interests.
Robinhood’s prediction marketplace efforts
Prediction markets let traders to spot fiscal bets connected aboriginal events, incentivizing close forecasting. While these markets faced regulatory hurdles successful the US, involvement has grown recently.
During the 2024 US statesmanlike election, event-based betting platforms similar Polymarkets saw accrued information and correctly predicted Donald Trump’s victory.
Robinhood concisely entered this space during that period, offering election-related contracts. The institution aboriginal tested a Super Bowl betting marketplace but withdrew it owed to compliance challenges.
Robinhood asserts that its latest inaugural follows each indispensable regulatory guidelines this time. The institution said it has engaged with the CFTC to guarantee compliance, with Mackenzie stating:
“We’re excited to connection our customers a caller mode to enactment successful prediction markets and look guardant to doing truthful successful compliance with existing regulations.”
The station Robinhood leverages Kalshi to grow trading offerings adding prediction markets appeared archetypal connected CryptoSlate.
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