Robinhood Markets is expanding its role in the initial public offering (IPO) market after receiving approval for Robinhood Securities to serve as an underwriter. This strategic shift allows the brokerage to move beyond simply distributing IPO shares to advising companies on deal structure and pricing, positioning it to compete directly with traditional Wall Street banks. The development comes as the company navigates a period of intense activity, including record-breaking trading traffic from the SpaceX IPO and the rollout of prediction markets for the 2026 FIFA World Cup.

Record Traffic from SpaceX IPO

Robinhood experienced record-breaking traffic during the SpaceX IPO on Friday, with its systems briefly experiencing disruptions before recovering. The brokerage was one of a few retail brokers, alongside Fidelity, Charles Schwab, SoFi, and E*TRADE, to receive retail IPO allocation for SpaceX. This provided its 27.7 million funded customers access to what became the largest IPO in history. The spike in platform activity underscores Robinhood's positioning as a primary platform for retail participation in landmark market events.

World Cup Prediction Markets

Bernstein has labeled the 2026 FIFA World Cup a "watershed moment" for prediction markets, estimating the tournament could generate $5 billion to $10 billion in consumer volume. The firm projects the event will drive roughly 650,000 incremental funded prediction accounts for Robinhood. The company has expanded its World Cup offering through Rothera, a CFTC-regulated derivatives exchange co-owned with Susquehanna International Group. Robinhood routes match outcome contracts, tournament winner markets, and total goals markets through its own exchange. Prediction markets are currently running at an annualized revenue rate of $415 million and are projected to reach $586 million by year-end, representing roughly 17% of Robinhood's transaction-based revenues.

Strong Growth Continues Across the Platform

The company's latest business update highlights continued growth. Platform assets reached a record $377 billion at the end of May, a 48% increase from the same period last year and a 9% increase from April. Net deposits reached $5.6 billion during the month, while equity trading volume climbed 75% year-over-year to $315 billion. Options trading also grew, with 231 million contracts traded during May, up 29% from a year earlier. Margin balances reached a record $19.5 billion, more than double the level seen a year ago.

Robinhood Markets Inc. CEO Vlad Tenev is advocating for broader direct equity ownership among retail investors as a means to foster a more stable and economically resilient society. Tenev shared his vision in a post on X on June 14, 2026, referencing a recent interview on The Knowledge Project podcast. The executive argued that maximizing the percentage of equity held directly by retail investors is a core long-term objective for the company.

Expanding Access and Starting Young

Tenev stated that Robinhood's "North Star" is maximizing direct equity ownership for retail investors globally. This goal extends beyond merely attracting new users; it involves making stock ownership accessible to individuals at younger ages and in more countries. He highlighted the recently launched Trump Accounts initiative as an example of efforts to introduce investing and asset ownership to a younger demographic. By providing broader access to investing tools, Tenev believes more people can build long-term wealth through ownership rather than relying solely on wages or savings.

The Private Markets Barrier

A significant challenge to broader ownership identified by Tenev is the expanding divide between public and private markets. He noted that many of the world's fastest-growing companies remain inaccessible to ordinary investors for years, limiting their ability to participate in early-stage value creation. As companies stay private longer, a larger share of wealth creation occurs before public investors can enter the market.

Tenev pointed to SpaceX's recent initial public offering as a prime example, noting the company spent years in private markets before debuting. Other major entities such as Anthropic, OpenAI, Stripe, and Databricks have also reached massive valuations while remaining largely inaccessible to retail investors. Tenev argued that reducing these barriers is critical as financial markets become increasingly global.