Robinhood (HOOD) CEO Vlad Tenev said during Yahoo Finance’s Invest event on Thursday that the company’s entry into prediction markets has been its biggest product launch this year.
And it’s the fastest-growing product in company history.
On the company’s earnings call last week, Tenev said the prediction market business was on track to become a $300 million annual revenue business, based on its October performance, which doubled from the prior quarter.
“We also announced [that in October], we’ve traded more contracts, at about 2.5 billion, than all of Q3 put together,” Tenev said. “So that’s been ramping extremely quickly.”
Launched in March, Robinhood’s prediction market business allows users to buy or sell event contracts on sporting events, elections, and more.
It could be a highly lucrative market for Robinhood, as two-thirds of its users also use mobile sports betting platforms like FanDuel and DraftKings (DKNG), according to a 2025 survey from investment bank Mizuho.
Regulated by the CFTC, event contracts enable Robinhood, along with sports betting companies like DraftKings and FanDuel, to operate in a regulatory gray area that brings the worlds of gambling and investing closer together.
Read more: Prediction markets: What they are and how they work
Robinhood has also been riding a boom in the crypto market this year, with its institutional crypto exchange Bitstamp recently seeing its growth surpass an annual rate of $100 million, Tenev said.
Amid a broad market sell-off on Thursday that sent tech stocks tumbling and crypto prices sliding, Robinhood stock fell more than 9%.
Robinhood stock — which was added to the S&P 500 (^GSPC) in September — is still up over 220% this year.
The company has also been aggressive in offering new products this year outside of its core trading capabilities, including a new service called Robinhood Banking.
Its banking product is designed to replicate the private banking experience typically reserved for the high-net-worth clients of major financial institutions.
As part of this offering, Robinhood said it will be offering cash delivery to customers’ doors.
“And as we started thinking about the types of features and services that the high-net-worth individuals would get, one of them is [that] they’re not going to an inner-city ATM,” Tenev said.
“They’re getting cash delivered to their house,” he said. “And surprisingly, even though we’re getting increasingly digitized, cash is still a very important part of the US economy, and people need it from time to time.”
