An organization with ties to the defunct cryptocurrency alternate FTX is being acquired by Robinhood Markets and Susquehanna Worldwide Group as a part of a push into prediction markets.
Based on a Reuters report on Tuesday, Robinhood and Susquehanna will acquire a 90% stake in LedgerX, one of many few solvent firms tied to FTX following its chapter submitting in 2022. The transfer got here simply hours after Robinhood announced the launch of a futures and derivatives platform with choices for prediction markets.
Robinhood initially reported the acquisition of a majority stake in MIAXdx, an alternate and clearinghouse licensed by the US Commodity Futures Buying and selling Fee. MIAXdx, beforehand referred to as LedgerX, was acquired by Miami International Holdings (MIAX) for $50 million in 2023 amid FTX’s chapter. MIAX will retain a ten% stake within the agency, in response to Reuters.
“By our retained fairness stake, the transaction introduced as we speak will present MIAX with entry to the rising prediction markets on an expedited foundation,” said MIAX CEO and chair Thomas Gallagher.
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The acquisition may put Robinhood ready to problem massive prediction platforms corresponding to Kalshi and Polymarket. Prediction markets surged significantly in 2024, pushed partially by curiosity in bets on US elections.
Not the one sport on the town
Since a federal courtroom cleared the way for Kalshi to supply occasion contracts tied to US elections in October 2024, the market has seen vital investments from firms out and in of the crypto business.
Kalshi reportedly increased its valuation to $11 billion final week after a funding spherical led by Sequoia Capital and CapitalG. Polymarket additionally scored a regulatory win on Tuesday, with the CFTC approving the company to function a US-intermediated buying and selling platform.
Cryptocurrency alternate Coinbase can also be reportedly engaged on a prediction markets platform backed by Kalshi.
Shares of Robinhood on the Nasdaq surged about 8% within the hours following the announcement, reaching $125.24 on the time of publication.
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