Robinhood Markets and Susquehanna International Group have reached an agreement to acquire a regulated exchange operated by Miami International Holdings (MIAX). The acquisition will significantly advance both companies' plans to establish a presence in the prediction markets.

The two firms will acquire a 90% stake in LedgerX, a platform that was previously part of the now-defunct cryptocurrency exchange FTX. In 2023, MIAX purchased LedgerX for $50 million through FTX's bankruptcy proceedings, integrating it into its MIAX exchange network.

JB Mackenzie, Vice President and General Manager of Robinhood’s Futures and International Business, stated, "Robinhood has observed strong user demand for prediction markets, and we are excited to build on this momentum."

Upon completion of the deal, Robinhood and Susquehanna will form a joint venture to launch a futures and derivatives exchange along with a clearinghouse. Financial details of the transaction were not disclosed, though MIAX will retain a 10% stake in LedgerX.

The move comes as prediction markets gain unprecedented mainstream traction in the U.S. A significant boost followed a federal court’s rejection of the Commodity Futures Trading Commission’s (CFTC) ban on election betting last year.

In November, new platform InPlay Global partnered with exchange operator MEMX to prepare for launching a trading platform next year, allowing investors to trade securities tied to sports team performance.

In October, Intercontinental Exchange invested up to $2 billion in Polymarket, the world’s largest prediction market, marking the NYSE parent’s entry into event-driven markets. Meanwhile, prediction market giant Kalshi reached a $11 billion valuation in its latest funding round, as reported by TechCrunch last week.

Additionally, CME Group and Cboe Global Markets are also planning expansions into the prediction market space.