Robinhood Markets is exploring an agreement that could bring Crypto.com event contracts into its app, potentially broadening the brokerage's prediction-market offering across sports, politics, economics, entertainment and cryptocurrency. The preliminary talks, first reported by The Wall Street Journal, have not resulted in a deal, and either company could still walk away.

Robinhood Markets is in talks with digital-currency exchange to expand the brokerage firm's foothold in prediction markets, according to people familiar with the matter.

— WSJ Markets (@WSJmarkets) July 24, 2026

Under the proposed arrangement, Robinhood customers would be able to trade yes-or-no event contracts without leaving the company's platform. Such contracts typically settle at $1 if the predicted outcome occurs. Their trading price generally reflects the market's implied estimate of the probability that the event will take place. The Commodity Futures Trading Commission regulates these products as event derivatives under the Commodity Exchange Act, a framework that distinguishes them from state-regulated gambling and has enabled their expansion through licensed exchanges and clearinghouses.

The potential Crypto.com integration would add to a product category that Robinhood has described as one of its fastest-growing areas. More than 1 million Robinhood customers traded 9 billion contracts during the product's first year of operation, according to the company's report. Management later said activity in April 2026 was approaching 3 billion contracts. Prediction markets now sit alongside equities, options and cryptocurrencies in Robinhood's effort to diversify revenue beyond traditional stock trading.

Robinhood Builds a Broader Prediction-Market Network

Robinhood already distributes prediction-market contracts supplied by Kalshi, Interactive Brokers' ForecastEx and Rothera, its joint venture with Susquehanna International Group. In January, Rothera acquired a CFTC-licensed exchange and clearinghouse, giving Robinhood more control over product development, distribution, liquidity and contract access.

That broader exchange structure has become more important as customer activity has increased. In November, Robinhood identified prediction markets as its fastest-growing product by revenue, underscoring the category's growing relevance to the brokerage's business.

Adding Crypto.com would further expand the range of contracts available to Robinhood users and reduce the firm's reliance on any single exchange provider. Kalshi would face the most direct impact because it already supplies contracts through Robinhood. At the same time, Robinhood has increasingly directed customer activity toward Rothera, reinforcing its internal distribution strategy.

Crypto.com has also been expanding in prediction markets. The company entered the sector through its standalone OG platform in February, operating through Crypto.com Derivatives North America. That entity is a CFTC-registered exchange and clearinghouse.

At OG's launch, Crypto.com said weekly activity had grown fortyfold over the previous six months. The company has continued to widen its distribution through outside partnerships. In June, FanDuel Predicts expanded its event-contract offering using OG and Crypto.com's regulated infrastructure, supporting Crypto.com's broader push into the market. That partnership also illustrated how prediction-market providers are reaching retail audiences by embedding their infrastructure behind established consumer brands.

Crypto.com Deal Would Add Competition and Regulatory Exposure

A Robinhood integration would give Crypto.com another major retail distribution channel and place its contracts alongside products from established exchanges and brokerage-backed platforms. It would also increase competitive pressure in a sector where several companies are trying to reach the same retail audience.

Kalshi continues to hold substantial scale in the market. According to reports, the company processed about $27 billion in volume and drew roughly 3 million users during the 2026 FIFA World Cup. Both figures were approximately double Kalshi's original expectations, highlighting how event contracts have grown from a niche product into a larger retail market.

The sector's expansion has also brought greater regulatory and surveillance pressure. Kalshi is challenging state regulators that classify sports event contracts as gambling products rather than federally regulated derivatives. The industry argues that the contracts fall under CFTC authority. However, Washington recently obtained a court order barring Kalshi from operating in the state. The outcome of such disputes could determine whether prediction-market operators face a fragmented patchwork of state-level restrictions or a more uniform federal framework.

Trading oversight has become more demanding alongside those legal disputes. Reuters reported that Kalshi flagged more than 400 suspicious trades during 2026, more than double the number investigated throughout 2025. In response, platforms have tightened restrictions on activity tied to confidential or nonpublic information.

For Robinhood, a Crypto.com agreement would mark another step toward a more diversified exchange model. It would also deepen the brokerage's exposure to regulatory, liquidity, surveillance and contract-quality risks.

The competition in prediction markets now extends beyond simply offering a larger number of events. Market leadership will depend on scale, reliable pricing, legal durability, liquidity, effective surveillance, contract quality and sustained customer trust.