A company with ties to the defunct cryptocurrency exchange FTX is being acquired by Robinhood Markets and Susquehanna International Group as part of a push into prediction markets.
According to a Reuters report on Tuesday, Robinhood and Susquehanna will acquire a 90% stake in LedgerX, one of the few solvent companies tied to FTX following its bankruptcy filing in 2022. The move came just hours after Robinhood announced the launch of a futures and derivatives platform with options for prediction markets.
Robinhood initially reported the acquisition of a majority stake in MIAXdx, an exchange and clearinghouse licensed by the US Commodity Futures Trading Commission. MIAXdx, previously known as LedgerX, was acquired by Miami International Holdings (MIAX) for $50 million in 2023 amid FTX’s bankruptcy. MIAX will retain a 10% stake in the firm, according to Reuters.
“Through our retained equity stake, the transaction announced today will provide MIAX with access to the growing prediction markets on an expedited basis,” said MIAX CEO and chair Thomas Gallagher.
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The acquisition could put Robinhood in a position to challenge large prediction platforms such as Kalshi and Polymarket. Prediction markets surged significantly in 2024, driven partially by interest in bets on US elections.
Not the only game in town
Since a federal court cleared the way for Kalshi to offer event contracts tied to US elections in October 2024, the market has seen significant investments from companies in and out of the crypto industry.
Kalshi reportedly increased its valuation to $11 billion last week after a funding round led by Sequoia Capital and CapitalG. Polymarket also scored a regulatory win on Tuesday, with the CFTC approving the company to operate a US-intermediated trading platform.
Cryptocurrency exchange Coinbase is also reportedly working on a prediction markets platform backed by Kalshi.
Shares of Robinhood on the Nasdaq surged about 8% in the hours following the announcement, reaching $125.24 at the time of publication.
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