Robinhood Markets is reportedly in discussions with cryptocurrency exchange Crypto.com to bolster its presence in the prediction markets sector. This potential deal could position Robinhood in more direct competition with Kalshi, a current partner that supplies betting contracts for Robinhood's prediction platform.

The proposed arrangement would integrate Crypto.com's prediction market offerings into Robinhood's existing hub, allowing users to place yes-or-no bets facilitated by the crypto exchange directly on Robinhood's trading platform. This move signifies an evolution from a partnership model to a more competitive landscape as both companies expand their reach.

Robinhood initially launched its prediction markets by offering Kalshi's event-based contracts in early last year, covering a range of outcomes from sports to Federal Reserve interest rate decisions. Other existing partners include Interactive Brokers' Forecast Ex and Rothera, part of a joint venture with Susquehanna International Group. While a deal between Robinhood and Crypto.com is not guaranteed, Robinhood stated its commitment to partnering with multiple exchanges for a diverse marketplace.