Nov 25 (Reuters) - Robinhood Markets ( HOOD ) and

Susquehanna International Group on Tuesday struck a deal to take

over a regulated exchange run by Miami International Holdings ( MIAX )

, giving the companies a major boost in their push to

establish a stronghold in prediction markets.

The companies are acquiring a 90% stake in LedgerX, which

was a part of now-defunct crypto exchange FTX. The platform

began operating under the MIAX umbrella after parent company

Miami International Holdings ( MIAX ) acquired LedgerX from the FTX

bankruptcy proceedings in 2023 for $50 million.

"Robinhood is seeing strong customer demand for prediction

markets, and we're excited to build on that momentum," said JB

Mackenzie, vice president and general manager of futures and

international at Robinhood.

Robinhood said that following the transaction, it will

introduce a futures and derivatives exchange and clearinghouse,

in a joint venture with Susquehanna. Financial details of the

transaction were not disclosed, but MIAX will continue to hold a

10% stake in LedgerX.

The moves come at a time when the business of prediction

markets is attracting unprecedented mainstream interest in the

U.S. Prediction markets have received a major boost since a U.S.

federal court dismissed a CFTC prohibition on election betting

last year.

In November, InPlay Global, a new platform that allows

investors to trade securities tied to the performance of sports

teams, signed a partnership with exchange operator MEMX ahead of

the launch of its trading venue next year.

Intercontinental Exchange ( ICE ) in October invested up to

$2 billion in the world's largest prediction market Polymarket,

marking the New York Stock Exchange owner's expansion into

event-driven markets. Kalshi, another predictions market

heavyweight, was valued at $11 billion in its latest fundraising

round, according to a TechCrunch report last week.

CME Group ( CME ) and CBOE also plan to enter

prediction markets.