Robinhood Markets Inc. is acquiring a majority stake in MIAXdx, a CFTC-licensed exchange once owned by the collapsed crypto empire FTX, marking the trading platform's most aggressive push yet into the booming prediction markets sector.
The acquisition, announced Tuesday, will see Robinhood and market-making giant Susquehanna International Group take a 90% stake in the derivatives exchange through a joint venture. Miami International Holdings Inc. will retain the remaining 10% equity stake.
The deal is expected to close in the first quarter of 2026, pending regulatory approvals.
MIAXdx, originally known as LedgerX before its acquisition by FTX, was purchased by Miami International Holdings from FTX's bankruptcy estate in May 2023 for approximately $50 million.
The platform holds critical regulatory approvals as a Designated Contract Market, Derivatives Clearing Organization and Swap Execution Facility, giving Robinhood a ready-made infrastructure to expand its derivatives offerings.
What Happened
Robinhood will serve as the controlling partner in the new venture, while Susquehanna will act as a day-one liquidity provider. The partnership aims to establish an independent exchange that will serve both Robinhood Derivatives and other Futures Commission Merchant platforms with futures and derivative products.
"Robinhood is seeing strong customer demand for prediction markets, and we're excited to build on that momentum," said JB Mackenzie, vice president and general manager of Futures and International at Robinhood, in a statement. "Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers."
The move comes as prediction markets have become Robinhood's fastest-growing product line by revenue. Since launching just one year ago, customers have traded approximately 9 billion contracts across more than 1 million accounts. In the third quarter alone, trading volume reached 2.3 billion contracts, more than double the previous quarter.
Robinhood currently partners with Kalshi to offer prediction markets on its platform, covering categories from politics and economics to sports. The new exchange will allow Robinhood to list and clear its own contracts independently, eliminating reliance on third-party platforms.
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Why It Matters
The prediction markets sector has experienced explosive growth in 2025. Kalshi recorded $4.4 billion in trading volume in October alone, while rival Polymarket posted $3.02 billion, bringing combined monthly volumes across platforms to approximately $7.4 billion.
This represents a dramatic shift from previous years. Kalshi's annualized trading volume surged from approximately $300 million in 2024 to $50 billion in mid-October 2025, a more than thousandfold increase. The platform recently raised $1 billion at an $11 billion valuation, while Polymarket secured up to $2 billion in investment at an $8 billion valuation.
Much of Robinhood's retail trading volume on prediction markets flows through Kalshi, with data suggesting Robinhood accounts for more than half of Kalshi's October volume. The new independent exchange will allow Robinhood to capture more of this value chain directly.
The acquisition also brings a crypto-derivatives legacy. LedgerX was one of the few solvent assets in FTX's collapse, having operated independently despite being owned by Sam Bankman-Fried's empire. FTX had purchased Ledger Holdings, LedgerX's parent company, for $298 million in 2021.
Final Thoughts
Robinhood's move signals growing mainstream acceptance of prediction markets as legitimate financial instruments rather than gambling platforms. The company's regulated approach, combined with Susquehanna's market-making expertise, could accelerate institutional adoption while maintaining retail accessibility.
The timing is strategic. Following a federal court decision last year that struck down CFTC restrictions on election betting, prediction markets have moved from crypto-native corners into mainstream finance. Sports betting has particularly driven recent growth, with Kalshi recording $1.1 billion in sports volume during a single week in late October.
The exchange is expected to begin operations in 2026, pending CFTC approvals and standard closing conditions. Additional liquidity providers will be added beyond Susquehanna to ensure competitive execution for customers.