Name: Robinhood, Coinbase battle it out for prediction markets customer
Uploaded: 2025-12-31T18:09:26.461Z
Duration: 1 min 48 s
Description: CNBC’s MacKenzie Sigalos reports on the divergence in crypto-linked stocks: Robinhood is up more than 200% year to date while Coinbase is in the red, helped by Robinhood’s early lead in one of the stickiest new products in brokerage apps — event contracts.

CNBC’s MacKenzie Sigalos reports on the divergence in crypto-linked stocks: Robinhood is up more than 200% year to date while Coinbase is in the red, helped by Robinhood’s early lead in one of the stickiest new products in brokerage apps — event contracts.

Robinhood and Coinbase are vying for leadership in the growing prediction markets industry, which allows users to trade contracts based on real-world outcomes. Robinhood has seen rapid growth, with 11 billion contracts traded since its launch last year, and has expanded into sports-related contracts and acquired a majority stake in Ledger X to secure regulatory infrastructure.

Coinbase, meanwhile, has recently entered the prediction markets space and made its 10th acquisition of the year by purchasing The Clearing Company to enhance its contract clearing capabilities. Other major players, including DraftKings, FanDuel, and Polymarket, are also entering the market, making prediction markets a key battleground for retail trading platforms.

Robinhood, Coinbase battle it out for prediction markets customer

Welcome back to Squawk on the Street. Exchanges that cater to retail traders have been racing to get a piece of the booming prediction markets. Mackenzie Sagal is joining us now. She's got a look at who is leading this important race. Mackenzie. And David, it is a tale of two fintechs. Robinhood is up about 200% this year, one of the best performers in the S&P 500. And Coinbase, it hit an all-time high above $440 in July, but it is now in the red year to date, still very much trading like a crypto proxy. And that divergence tells a story. Prediction markets let you trade on real-world outcomes, and the category has exploded in 2025. Weekly volumes have topped $2 billion. CalShi alone hit $50 billion in annualized volume this year. And analysts say this could be a trillion-dollar market by the end of the decade. Now, Robinhood has proven prediction markets can be a breakout product inside of a mainstream brokerage. 11 billion contracts traded since launching last year. Now its fastest-growing product by revenue in company history. And it's pushing deep into sports contracts tied to NFL games and players' territory that's traditionally belonged to Sportsbook. Now, in November, it took a majority stake in Ledger X with Susquehanna, so now it controls its own CFTC-regulated exchange and clearinghouse. Meanwhile, Coinbase, it is playing catch-up. It launched prediction markets this month and just announced its 10th acquisition of the year, a startup called The Clearing Company run by Polymarket and CalShi veterans that gives Coinbase the tech and talent that it needs to clear and settle contracts. But the space, it is getting crowded fast. DraftKings bought its own exchange. FanDuel is teaming up with the CME. Polymarket is entering the U.S. through a newly approved venue. So really, this is shaping up to be the next big battleground for retail trading. Sarah?

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