Robinhood Adds Prediction Markets Hub to Retail Trading App

Group 1 - Robinhood has launched a prediction markets hub in its app, allowing users to trade on event outcomes, starting with contracts related to the Fed funds rate and college basketball tournaments [1][2] - The prediction markets hub will initially be available in the U.S. through Kalshi, an exchange regulated by the Commodity Futures Trading Commission (CFTC) [2] - The company aims to enhance user engagement by increasing wallet share of existing investors and attracting a broader audience to its retail trading platform [4] Group 2 - Robinhood's vice president emphasized the importance of prediction markets at the intersection of various sectors, expressing excitement about offering this new feature while ensuring compliance with regulations [3] - In the fourth quarter, Robinhood reported 26.2 million accounts and a transaction-based revenue of $672 million, marking a 236% increase year-over-year and a 111% increase from the previous quarter [3] - The company has introduced new features such as Robinhood Legend and plans to launch index options, futures, and a realized profit and loss tool, indicating strong momentum in its offerings [5]