Robinhood CFO Shiv Verma announced plans to migrate the majority of prediction market trading to Rothera, a new in-house exchange.
Verma disclosed the move during the Bernstein Strategic Decisions Conference.
The company developed Rothera as a joint venture with Susquehanna.
Launch of the platform is imminent and aligns with previous Q2 guidance.
Robinhood currently serves 1.5 million users in its prediction market segment.
Internalizing exchange and clearing functions allows Robinhood to capture more revenue.
This strategic shift will likely reduce volume for Kalshi, the third-party exchange currently used by Robinhood.