Analysis: Robinhood and Coinbase may become the biggest beneficiaries of the prediction market boom.

In its latest report, Cantor Fitzgerald points out that with the rapid rise of prediction markets, Robinhood and Coinbase are poised to become major beneficiaries of this sector, leveraging their large retail user base and mature trading infrastructure. While leading platforms like Kalshi and Polymarket remain privately held, Robinhood and Coinbase have already begun to penetrate this market by integrating event-driven trading into their apps. Cantor notes that prediction markets allow users to trade contracts around real-world events such as elections and economic data, with prices reflecting group probability judgments. This model is similar to stock and crypto trading platforms, primarily charging fees based on trading activity. Robinhood's prediction market product, launched after the US election, has grown rapidly and become one of its fastest-growing revenue streams. Coinbase, on the other hand, is gradually opening up related features to users by integrating with Kalshi's infrastructure. The report believes that prediction markets not only have potential for retail trading but may also play a role in institutional hedging and macroeconomic forecasting in the future. However, regulation remains the biggest uncertainty, with their legal status currently controversial between derivatives and gambling. (CoinDesk)