Robinhood has announced its presidential election event contracts.

The prediction market will be available to select customers.

Settlements will be paid next year.

American financial services company Robinhood announced that it will begin rolling out U.S. presidential election event contracts on Monday through Robinhood Derivatives, LLC (RHD).

The move came after prediction markets, powered by blockchain technology, became popular in 2024, especially among users seeking alternative data sources and social sentiment indicators on real-world events. According to Tesla billionaire Elon Musk, decentralized betting platforms like Polymarket provide “more accurate” predictions than polls on the upcoming November 5 general election.

Robinhood Enters Election Prediction Market

According to a press release dated October 28, RHD will roll out Robinhood’s presidential election event contracts for Kamala Harris and Donald Trump to a limited number of customers who apply and meet specific criteria for holding an approved platform account. Sponsored

In addition to being a U.S. resident, eligible customers must have an active individual investing account with either margin investing enabled or options trading approved at the second or third level.

While the company didn’t disclose user funding options or whether crypto deposits would be allowed, it clarified that the value of each underlying contract could equal up to $1.00, with the final cash settlement price ranging from $0.00 to $1.00.

“This will be paid out on January 8, 2025 after the presidential results are certified by the US Congress on January 6, 2025. The owners of contracts that were incorrect will receive $0.00 per contract and their positions will be settled worthless,” Robinhood said.

Per the statement, Robinhood believes that its event contracts would give people a tool to participate in real-time decision-making and unlock a new asset class that democratizes access to events as they unfold.

Read how Robinhood recently paused 24-hour trading amid a global market downturn:Robinhood Pauses 24-Hour Trading as the Market Goes HaywireStay updated on how betting anomaly pushed Trump’s odds to 99% on Polymarket:Betting Anomaly Shoots Trump’s Odds to 99% on Polymarket