Robinhood reached another record share price on Tuesday following reports that the company plans to launch prediction markets outside U.S. borders. The trading platform's stock climbed above $142 during morning trading before settling near $140.
HOOD has posted extraordinary gains of 275% year-to-date on the Nasdaq exchange. Monday's rally came after CEO Vlad Tenev disclosed that customers have traded more than 4 billion event contracts on the company's prediction platform, with 2 billion of those occurring in the most recent quarter alone.
Bloomberg reported that the company has engaged with overseas regulators, including the U.K.'s Financial Conduct Authority, about European expansion. Discussions focus on how different jurisdictions classify and oversee prediction market products.
Regulatory frameworks vary significantly across borders. U.S. authorities treat event contracts as futures instruments subject to swap oversight, while other countries regulate similar products under gambling laws.
JB Mackenzie, who leads futures and international operations at Robinhood, described the regulatory complexity. “The question would be where is swap oversight, let's say in the U.K.? That's a question that we've been asking the FCA,” he explained to Bloomberg.
The Menlo Park, California, platform enables users to trade stocks, commodities, and digital assets. Event contracts debuted last October for U.S. customers ahead of the presidential election, allowing speculation on political outcomes and sporting events.
Robinhood partnered with licensed operator Kalshi to offer March Madness basketball tournament contracts earlier this year. The collaboration expanded the platform's prediction market offerings into major sporting events.
Kalshi and Polymarket currently dominate the prediction market space, though Coinbase has signaled interest in entering the sector. Recent data shows Kalshi overtaking Polymarket in monthly trading volume despite the latter's longer market presence.
Polymarket operated outside U.S. jurisdiction for an extended period but recently cleared a regulatory hurdle that should enable American operations. Both platforms facilitate cryptocurrency-based wagering on event outcomes, aligning with Robinhood's broader push into digital asset products beyond simple spot trading.