Robinhood, Susquehanna Escalate Prediction-Market Arms Race

Robinhood Markets Inc. and Susquehanna International Group are taking over a regulated exchange that was tied to the now-defunct crypto business FTX, giving them a powerful new foothold in the fast-growing world of prediction markets.

The two firms are buying a majority stake in LedgerX, a US-based derivatives exchange once owned by FTX and now run by Miami International Holdings Inc.

The buyers already have strong ties to prediction markets. Susquehanna has said it serves as a market maker on Kalshi, the leading US prediction market exchange. Robinhood offers Kalshi’s event contracts to its retail investing clients.

The new ...