During a recent appearance at Yahoo Finance’s Invest event, Robinhood CEO Vlad Tenev highlighted the company’s notable foray into prediction markets, calling it the most significant product launch of the year. This initiative has rapidly become the fastest-growing product in the company’s history. Tenev revealed on the company’s earnings call last week that the prediction market segment is projected to generate $300 million in annual revenue, based on impressive performance metrics from October, which saw business double from the previous quarter.
“In October, we’ve traded around 2.5 billion contracts, more than the total for all of Q3 combined,” Tenev explained, indicating that the product is experiencing exponential growth since its launch in March. The platform allows users to engage in buying and selling event contracts related to various scenarios, including sporting events and election outcomes.
This venture into prediction markets is particularly promising given that a significant portion of Robinhood’s user base—two-thirds—also utilizes mobile sports betting services like FanDuel and DraftKings, according to a 2025 survey conducted by investment bank Mizuho. The prediction markets are regulated by the Commodity Futures Trading Commission (CFTC), which places Robinhood and other sports betting companies in a regulatory gray area, effectively merging the realms of gambling and investing.
In addition to prediction markets, Robinhood has been capitalizing on a surge in the cryptocurrency sector. Tenev noted that their institutional crypto trading platform, Bitstamp, saw its growth surpass an annual rate of $100 million. However, amid a broader market downturn that adversely affected technology stocks and cryptocurrencies, Robinhood’s stock fell more than 9%. Despite this dip, Robinhood’s shares, which were added to the S&P 500 index in September, have experienced a remarkable increase of over 220% this year.
Moreover, the company is not solely focused on its trading capabilities; it has also been rolling out new products, including Robinhood Banking. This banking service aims to replicate the experience traditionally offered to high-net-worth individuals by major financial institutions. Among its unique features, Robinhood plans to offer cash delivery directly to customers’ homes. Tenev emphasized the innovative nature of this service, stating, “High-net-worth individuals aren’t going to an inner-city ATM; they’re getting cash delivered to their house.” He further noted that despite increasing digitization, cash remains a significant element of the U.S. economy, highlighting the necessity of such services for consumers.
