Robinhood has launched a new prediction markets hub within its trading application, allowing users to engage in event-based contracts. This move represents a significant expansion for the platform, venturing beyond traditional stock and cryptocurrency trading. The initial offerings within the hub include contracts tied to the Federal Reserve's interest rate decisions and the outcomes of major sporting events, such as the men's and women's college basketball tournaments.  

The prediction markets hub is facilitated through a partnership with Kalshi, a Commodity Futures Trading Commission (CFTC) regulated exchange. This collaboration ensures that the new feature operates within a regulated framework. Robinhood has emphasized its commitment to working closely with the CFTC to ensure compliance and promote innovation in the futures, derivatives, and cryptocurrency markets.  

Source: Google Finance

This launch follows Robinhood's previous forays into event-based contracts, including those related to political elections. The company sees prediction markets as a valuable tool for understanding and participating in a range of events across news, economics, politics, sports, and culture.  

The introduction of prediction markets reflects Robinhood's ongoing efforts to diversify its offerings and attract a broader range of users.

 The company aims to provide its customers with new ways to engage with financial markets and participate in events that align with their interests. The addition of this hub, adds another layer to the services that Robinhood provides to it's users.