Robinhood and Coinbase are positioned to capitalize on the burgeoning prediction market sector, according to a report by Cantor Fitzgerald. The report highlights that while platforms like Kalshi and Polymarket remain private, Robinhood and Coinbase are integrating event-based trading into their offerings, allowing users to trade contracts tied to real-world outcomes. This model, which generates revenue through trading activity, aligns with their existing equities and crypto trading operations.Robinhood has already seen significant traction with its prediction markets hub, launched after the 2024 U.S. election cycle, becoming one of its fastest-growing revenue streams. Users have traded billions of contracts related to sports, politics, and macro events. Coinbase, leveraging Kalshi's infrastructure, is also expanding its prediction market offerings across various categories, including crypto and global events.Cantor Fitzgerald notes that platforms with large retail audiences and existing trading infrastructure, like Robinhood and Coinbase, have a competitive advantage in driving liquidity and participation. Despite regulatory uncertainties, the report suggests that prediction markets will continue to grow, with potential applications in institutional risk management and macro hedging.