Robinhood Takes On Coinbase as Stock and Crypto Overlap

Core Viewpoint - Robinhood and Coinbase are increasingly seen as rivals in the digital asset space, competing for the same customer base as they expand into overlapping markets [2][3]. Company Performance - Robinhood's shares increased by 186% during 2025, while Coinbase's shares decreased by 12% despite a favorable crypto environment [3]. - Robinhood generated approximately 20% of its revenue from crypto operations in Q3 2025 [4]. Market Expansion - Coinbase is entering the stock trading market, while Robinhood is expanding its cryptocurrency offerings and focusing on prediction markets [2]. - Robinhood's prediction markets have become its fastest-growing revenue source, generating $300 million in Q3 2025, with 2.3 billion event contracts traded in that quarter and 2.5 billion in October alone [6]. Industry Insights - The prediction market space is viewed as a potentially large asset class, with Robinhood's CEO expressing excitement about its growth potential [7]. - However, there are concerns regarding the participation and incentives in prediction markets, including issues of liquidity, ethical considerations, and consumer protection [8].