Investment banking giant Cantor Fitzgerald has identified Robinhood and Coinbase as the top contenders to capitalize on the growing prediction market industry, citing their extensive retail user bases and established trading infrastructures. In a recent analysis, the firm suggested these platforms are uniquely positioned to dominate the space as prediction markets gain traction among mainstream investors.
Prediction markets, which allow users to bet on the outcomes of future events, have seen increased interest following regulatory clarity in some jurisdictions. Analysts note that Robinhood’s 23 million active users and Coinbase’s 110 million verified users provide a ready-made audience for such products. ‘These platforms have already solved the hardest problems in fintech – onboarding and retaining retail traders,’ said one industry analyst familiar with the report.
The assessment comes as both companies expand beyond their core offerings. Robinhood recently acquired a prediction market startup, while Coinbase has been experimenting with event-based derivatives. Regulatory challenges remain significant, however, with the SEC maintaining that many prediction market products qualify as securities under U.S. law.
Looking ahead, market observers suggest that success in prediction markets could provide a new revenue stream for trading platforms facing pressure from declining crypto transaction volumes. ‘This represents a natural evolution for brokerages seeking to diversify their product mix,’ noted a fintech researcher at NYU’s Stern School of Business.