Robinhood expanded its trading offerings with a new prediction markets hub to enable users trade on the outcomes of major events. Initially, traders can speculate on the Federal Reserve’s interest rate decisions and upcoming college basketball tournaments, the company mentioned.

“We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture,” commented JB Mackenzie, VP & GM of Futures and International at Robinhood. “We’re excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations.”

New Trading Opportunity for Robinhood Users

According to the announcement, Robinhood Derivatives, LLC (RHD) has introduced a standalone prediction markets hub within its app. The feature enables users to engage in event-based trading by purchasing contracts tied to real-world outcomes.

Starting today, you can now trade contracts on the men's and women's college basketball tournaments.

See you at tip-off: https://t.co/WXpUDpYBJO pic.twitter.com/fRF6xhr0Xd

— Robinhood (@RobinhoodApp) March 17, 2025

At launch, the hub will support trades on the upper bound of the Federal Reserve’s target interest rate for May and the men’s and women’s College Basketball Tournaments. Robinhood’s prediction markets hub operates through KalshiEX LLC, a regulated exchange overseen by the Commodity Futures Trading Commission (CFTC).

By introducing this new trading feature, Robinhood now aims to provide customers with a new way to engage with events that align with their interests. The company emphasized that prediction markets operate within a regulated framework, ensuring transparency and liquidity.

Regulatory Compliance and Expansion Plans

The company stated that it has been in close discussions with the CFTC and intends to maintain compliance while expanding its offerings. The new feature aligns with Robinhood’s broader mission to make financial markets more accessible.

Robinhood’s move into prediction markets underscores a growing trend where financial platforms integrate real-world events into trading strategies.

While the initial offerings focus on interest rates and sports, the firm expects to expand into elections, corporate earnings, and geopolitical developments. The prediction markets hub is rolling out now and will reportedly be available to all eligible users across the U.S. in the coming days.

Expect ongoing updates as this story evolves.