Introduction
Robinhood Markets and Susquehanna International Group are making a strategic move into prediction markets by acquiring a 90% stake in MIAXdx, a company previously linked to the collapsed FTX exchange. The acquisition positions the firms to compete directly with established prediction market platforms like Kalshi and Polymarket, coming just hours after Robinhood announced the launch of its own futures and derivatives platform. This coordinated push signals a significant expansion into sophisticated financial products beyond traditional stock trading.
Key Points
- Robinhood and Susquehanna acquire 90% stake in MIAXdx (formerly LedgerX), a CFTC-licensed exchange and clearinghouse
- The acquisition positions the firms to compete with prediction market leaders Kalshi and Polymarket amid growing sector interest
- Miami International Holdings retains 10% stake after having acquired the company for $50 million during FTX's bankruptcy proceedings
Strategic Acquisition in Growing Prediction Market Space
The acquisition of MIAXdx represents a calculated entry into the rapidly evolving prediction markets sector for both Robinhood Markets and Susquehanna International Group. According to the Reuters report, the two firms will acquire a 90% stake in the company, which operates as a licensed exchange and clearinghouse under the US Commodity Futures Trading Commission. This move comes at a time when interest in prediction markets is heating up, creating direct competition with established platforms like Kalshi and Polymarket.
MIAXdx, previously known as LedgerX, maintains significant historical connections to the defunct cryptocurrency exchange FTX, having been one of the few solvent companies tied to FTX following its 2022 bankruptcy filing. The company’s acquisition by Miami International Holdings (MIAX) for $50 million in 2023 during FTX’s bankruptcy proceedings provided a foundation for this current transaction. Under the new ownership structure, MIAX will retain a 10% stake in the firm, maintaining some continuity from the previous ownership regime.
Robinhood's Expanding Financial Product Ecosystem
The timing of this acquisition is particularly significant, coming just hours after Robinhood announced the launch of its own futures and derivatives platform with options for prediction markets. This coordinated strategy indicates Robinhood’s broader ambition to expand beyond its traditional stock trading offerings into more sophisticated financial instruments. The company initially reported the acquisition as involving a majority stake in MIAXdx, emphasizing the strategic importance of this move in their product diversification efforts.
By integrating MIAXdx’s established infrastructure and regulatory approvals, Robinhood can accelerate its entry into the prediction markets space without building capabilities from scratch. The CFTC-licensed status of MIAXdx provides immediate regulatory legitimacy, while the company’s experience in derivatives and clearing operations offers technical expertise that would otherwise take significant time and resources to develop internally.
Competitive Landscape and Market Implications
This acquisition positions Robinhood and Susquehanna in direct competition with prediction market leaders Kalshi and Polymarket, signaling increased institutional interest in this emerging financial sector. The move reflects growing recognition of prediction markets as a legitimate asset class rather than niche trading platforms. With Susquehanna’s market-making expertise and Robinhood’s retail trading platform reach, the partnership brings substantial competitive advantages to the prediction markets arena.
The involvement of multiple established financial institutions in this transaction underscores the sector’s maturation. Susquehanna International Group brings sophisticated trading capabilities and market structure knowledge, while Robinhood contributes its massive retail user base and technology platform. This combination creates a formidable competitor that could potentially reshape the prediction markets landscape, bringing more mainstream acceptance and liquidity to these markets.
The retention of a 10% stake by Miami International Holdings suggests ongoing confidence in MIAXdx’s future prospects under the new ownership. This partial retention also maintains some continuity with the company’s recent history while allowing Robinhood and Susquehanna to drive strategic direction. The transaction represents another step in the rehabilitation of FTX-linked assets, demonstrating how viable business units from failed enterprises can find new life under different ownership structures.
📎 Source reference: cointelegraph.com