Robinhood is exploring potential acquisitions to boost its entry into prediction markets, as interest in event-driven trading continues to rise, a top executive informed Reuters.

“We are actively evaluating possible acquisitions that could be advantageous to our expansion efforts,” stated JB Mackenzie, Vice President and General Manager of Futures and International at Robinhood. “I’m always on the lookout for opportunities; if we find something appealing, we’ll assess it to determine suitability.”

In March, Robinhood introduced its event contracts trading platform in collaboration with Kalshi—recently valued at $5 billion in its latest funding round—and Interactive Brokers’ ForecastEx. The company aims to tap into the increasing interest in this previously niche asset category, which surged during the 2024 U.S. presidential election and now encompasses bets on diverse topics, from monetary policy to key sports events.

Event contracts function as binary outcome wagers, yielding payouts when a specified result occurs or becoming worthless otherwise.

As competition heats up in this marketplace, the Intercontinental Exchange (ICE)—the parent company of the New York Stock Exchange—recently made a $2 billion investment in Polymarket. Additionally, new players like Underdog are launching their own event contract offerings.

Piper Sandler projected that Robinhood’s event contract revenue was exceeding $200 million annually as of September, with Robinhood users contributing to 25%-35% of Kalshi’s daily trading volume.

“That being said, we are confident in our engineering team to develop high-quality products in-house. Therefore, our approach will be to strike a balance between acquisitions and internal innovation,” Mackenzie noted.

Furthermore, Robinhood is open to exploring growth strategies through joint ventures or partnerships as alternatives to outright acquisitions.

Robinhood’s stock has soared by 273% this year, propelling its market capitalization above $123 billion and ensuring its inclusion in the S&P 500 index, as it endeavors to transition from a retail stock trading platform into a comprehensive financial services organization.