eToro (Nasdaq: ETOR) is reducing about 7 per cent of its global headcount, according to sources. A letter sent by the broker’s CEO, Yoni Assia, to staff, and seen by FinanceMagnates.com, noted: "As eToro matures, we must ensure we are correctly sized to meet our business needs and support our long-term growth strategy."According to eToro's IPO prospectus, it had 1,501 employees across over 10 offices globally, as well as remotely, by the end of 2024. If those numbers remain intact (or are around), the broker will lay off over 100 staffers.However, it remains unclear who or which positions will be cut as part of eToro’s mass layoff drive.eToro is headquartered in Israel and has offices in the UK, Cyprus, Belgium, Germany, Denmark, the United States, Australia, Abu Dhabi, Singapore, Seychelles, Malta, and Gibraltar.Brokers Cutting Staff Is Common"We are reducing our global headcount by approximately 7%", Assia wrote. "This is not a decision that we take lightly and we will be supporting all impacted employees as best we can". "We are aligning our resources with our key priorities and leveraging process automation and AI to operate more efficiently and focus on the areas most critical to our long-term success. This will sharpen our execution so we can move faster". "It is often harder to make these changes when a company is doing well, but that is precisely when they are most necessary", Assia continued. "By taking these steps now from a position of strength, we are focusing our people and effort on the technologies and opportunities that will shape our future". Assia clarified that "Our financial condition has never been stronger. In Q3, we saw net contribution (revenue) growth of 28%, Adjusted EBITDA growth of 43%, and solid cash flow generation. We have a strong balance sheet (cash, cash equivalents and short term investments were $1.2 billion as of September 30, 2025) and we will continue to invest in areas that support our continued growth, including looking for strategic opportunities for in-organic expansion". "The investing landscape is experiencing unprecedented change. We are confident that we are well placed to capture the significant growth opportunities presented by multiple macro tailwinds, strengthen our competitive position, and deliver long-term value to our users and shareholders."Not Only eToroMeanwhile, eToro is not the only broker to cut its workforce. In 2023, IG Group reduced its global workforce by 10 per cent, while a few months later, CMC Markets announced a 17 per cent staff reduction. FinanceMagnates.com recently reported exclusively that the operator of FXCM and Tradu was also preparing to cut more than 100 employees. Tradu also mentioned AI as a partial reason for the layoff. Despite its strong listing, eToro shares have been struggling in the market for months. The stock has lost over 50 per cent of its value since the listing and was recently downgraded by Goldman Sachs from Buy to Hold, with the firm trimming its price target.Although the platform projected a 7 per cent annual top-line growth for 2025–2027, this trails the peer average of 8 per cent. Its 36 per cent pre-tax margin also looks thin compared with the sector’s 54 per cent. This article was written by Arnab Shome at www.financemagnates.com.

Fintech giant Revolut has emerged as a major banking force in Spain. With over six million customers in the country, it reached a market penetration of 13% - ahead of established players like ING and Banco Sabadell. The milestone signals a significant transformation from a niche fintech app to a scaled retail banking player, comparable to major digital retail banks in Spain. The country has become Revolut’s third-largest market globally, after the UK and France. According to data from Inmark Group, Revolut now ranks as the fourth-largest bank by customer penetration, trailing only the country’s three largest traditional banks: CaixaBank, BBVA, and Santander. Revolut’s rapid growth taps into long-standing customer dissatisfaction with Spain’s traditional banking sector.From User Growth to Deeper Banking EngagementMarket commentary on X suggests that Spanish banks have “barely evolved” since the mid-2000s, sticking to cumbersome processes, overly sensitive app security, and a lack of modern perks. This customer frustration is now translating into measurable growth as users flock to Revolut’s more modern offerings.This is excellent. Spanish banks have barely evolved since I arrived in 2006. You have to build a solid relationship before they even offer you a credit card. Their apps are over sensitive on security and they offer zero perks. The market is ripe for Revolut. If they extend to a… https://t.co/Ox3lM0jEzD— Ben Walker (@bensroom) January 9, 2026The company’s growth is reflected in hard numbers: savings deposits quadrupled in 2025, with total balances reaching €2.14 billion, while investment activity doubled, with the average investment size surging by 175%. Revolut is also making a move into physical infrastructure, further blurring the lines with traditional banks. The company has already installed 50 of its own ATMs in Madrid and Barcelona, with plans to expand the network to 200 units in 2026. This success in Spain is part of a broader global expansion for the fintech firm, which now serves over 65 million customers worldwide and recently achieved a valuation of $75 billion. The Spanish data supports Revolut’s broader strategy of converting a large retail user base into a multi-product financial platform. While adoption is strong, familiar questions remain around depth of engagement, margins, and regulatory complexity as digital banks move closer to traditional banking territory. This article was written by Tanya Chepkova at www.financemagnates.com.

Kalshi CEO Tarek Mansour used the recent controversy over alleged insider trading to draw a sharp dividing line between his federally regulated exchange and its offshore competitors. In a public statement, Mansour argued that lumping all prediction markets together is a critical mistake. He clarified that platforms regulated by the Commodity Futures Trading Commission (CFTC), such as Kalshi, operate under specific U.S. regulatory requirements, which differ significantly from the “wild west” environment of unregulated offshore platforms. His comments come as the industry faces scrutiny. The debate began after a Polymarket user won over $436,000 by correctly predicting the ousting of Venezuelan President Nicolás Maduro just hours before it happened. More recently, another Polymarket trader allegedly netted over $1 million by placing near-perfect bets on Google's Year in Search rankings, sparking accusations of trading on non-public information. These incidents have prompted a legislative response. U.S. Representative Ritchie Torres is drafting a bill to explicitly ban federal employees from trading on prediction markets – online platforms where participants buy and sell contracts based on outcomes of future events – using inside information. Mansour clarified Kalshi's position, stating, “Insider trading is banned on Kalshi (and always has been),” with rules adapted from the NYSE and Nasdaq. He supported the bill, noting it codifies existing Kalshi practices, and pointed out it would not apply to offshore platforms where these issues arise. A Fundamental Divide in Philosophy The controversy highlights a deep philosophical split within the prediction market industry over the role of inside information – a divide that stands in contrast to the harmonised rules of the traditional brokerage world. Licensed brokers operate under a zero-tolerance regime for insider trading, mandated by laws such as the Insider Trading and Securities Fraud Enforcement Act (ITSFEA), with requirements to maintain information walls, restrict employee trading, and report suspicious activity to regulators like FINRA and the SEC. In prediction markets, the approach remains fragmented. Regulated platforms like Kalshi mirror the traditional exchange model, enforcing a strict ban on trading on Material Non-Public Information (MNPI) and cooperating with regulators. The stance of unregulated offshore players is often ambiguous. Some argue that trading on private information improves price discovery, even as it raises questions around fairness and market integrity. This debate also fits into a longer-running rivalry between Kalshi and Polymarket. In earlier interviews, Mansour described sustained competition as a force that pushes prediction markets to mature from a niche product into a credible financial industry. Against that backdrop, the current controversy over insider trading marks a shift in how that rivalry is being contested – away from product features and toward regulation, governance, and legitimacy. By publicly aligning Kalshi with established exchanges and federal regulators, Mansour is reinforcing a reputational distinction at a moment when prediction markets as a category are facing heightened scrutiny. The result is a clearer institutional divide, with regulated platforms increasingly framed as credible market infrastructure, while offshore venues are pushed into a separate and riskier category in the eyes of policymakers and counterparties. This article was written by Tanya Chepkova at www.financemagnates.com.

Broadridge Financial Solutions has acquired a minority ownership position in DeepSee, a Utah-based firm specializing in agentic AI, and will begin deploying automated email orchestration tools across its post-trade processing operations.Broadridge Takes Stake in DeepSee to Automate Post-Trade Email WorkflowsTom Carey, president of Broadridge Global Technology and Operations, will join DeepSee's board of directors as part of the arrangement. The partnership initially targets email management for operations teams handling fails research and inventory optimization tasks."This latest investment and partnership underscores Broadridge's commitment to delivering innovative AI-powered solutions that transform operations, reduce risk, and enhances the client experience," Carey said."Working with DeepSee, we are bringing agentic AI directly into post-trade workflows, helping clients move from manual email handling to intelligent automation, unlocking new levels of productivity and operational resilience."The investment comes as financial institutions face mounting pressure to demonstrate returns on AI spending after several years of experimentation. Industry executives at the Finance Magnates London Summit warned that firms not actively deploying AI risk falling behind competitors.Email Inboxes Converted to Automated WorkflowsBroadridge processes over 15 trillion dollars in daily trades and already operates AI-enhanced tools through its OpsGPT platform for settlement efficiency. The DeepSee technology converts incoming email requests into connected workflows where AI agents, systems, and human operators function together.Pre-trained agents automate routine operations while industry-specific AI capabilities turn communications into actions, according to the companies. The system provides real-time dashboards showing service level agreement metrics, operational trends, and team performance data.Broadridge has deployed the solution across its business process outsourcing operations, which serve more than 60 clients. The technology integrates with Broadridge's existing post-trade capabilities and can be implemented either through the Broadridge platform or as a standalone system."From the beginning, DeepSee's vision has been to leverage the power of AI agents to transform the complex processes of financial services into actionable outcomes that drive immediate, production-ready business impact," said Steve Shillingford, CEO and founder of DeepSee. Automation Pressure Builds Across Financial OperationsMultiple firms have launched AI agent products for financial services in recent months. Retail platform Public introduced an automated trading feature allowing users to build portfolios through text prompts, while SAP Fioneer deployed AI agents for banks and insurers.Broadridge, which generates over 7 billion communications annually and employs more than 15,000 people across 21 countries, has been expanding its technology leadership. The company hired former JPMorgan executive Munish Gautam to oversee trading platforms last year.Financial firms are also exploring blockchain-based settlement systems, which have begun processing higher volumes than some crypto-native products in fixed-income markets. This article was written by Damian Chmiel at www.financemagnates.com.

Revolut is negotiating the acquisition of FUPS, a Turkish digital bank, as the fintech looks to enter the country's rapidly evolving banking market. The talks represent the latest step in Revolut's ongoing push to expand its global footprint. However, no final agreement has been reached and the discussions could still fall apart, according to people familiar with the matter quoted by Bloomberg.Any transaction would need approval from Turkey's Banking Regulation and Supervision Agency, known locally as BDDK. Revolut Pursues 100 Million Users Across Global MarketsRevolut, led by billionaire Nik Storonsky, has built a user base approaching 70 million customers worldwide. The company closed a funding round in November at a $75 billion valuation, a 67 percent jump from its $45 billion valuation the previous year, as it posted revenue gains and attracted investment from Nvidia's venture arm.The fintech has been aggressively targeting new markets in recent months, from the Nordics to Mexico. Revolut has pitched expansion plans for China to investors, outlining strategies for hiring, licensing, and scoping opportunities in the country.Turkish Banks Digitize but Still Rely on Physical PresenceTraditional banks in the country have invested heavily in digital services, with the number of active digital banking customers increasing to more than 120 million. Major players like Garanti BBVA have integrated artificial intelligence and data analytics to enhance customer service.However, these incumbents still maintain extensive branch networks, a dependency that could give purely digital players an edge.“Revolut's potential entry into Turkey makes strategic sense, intensifying competition in a market where incumbents are already digitally advanced, but still depend on branch networks,” said Tomasz Noetzel, senior industry analyst at Bloomberg Intelligence. “The deal's strategic execution will be critical to differentiation, beyond price and user experience.”Turkey's Banking Regulation and Supervision Agency launched digital banking regulations in 2022, formally opening the door for neobanks. The regulator has granted digital banking licenses to five institutions: Hayat Katılım, Kasa Katılım, T.O.M. Katılım, FUPS Bank, and Ziraat Dinamik.FUPS Operates With Minimal Staff After 2022 LaunchFUPS received its banking license in 2022 with founding capital of 1.5 billion liras, worth just over $81 million at the time. The bank was established by Lydians Elektronik Para ve Ödeme Hizmetleri, which operates as both a payment service provider and electronic money institution. As of September 2025, FUPS employed 60 people, according to data from the Turkish Banks Association.The Turkish opportunity follows Revolut's entry into Argentina in June 2025 by purchasing a local lender from BNP, where it acquired Banco Cetelem's local banking license and approximately $6.4 million in assets. The company has pursued similar strategies in India, where it acquired Arvog Forex in 2022 after pumping over $45 million into the market.Turkey's digital banking market was valued at $101.52 million in 2025 and is projected to grow to $267.3 million by 2034, expanding at an 11.36 percent compound annual growth rate. The country's 80.7 million active cellular mobile connections provide a substantial market for mobile banking applications.In September 2025, Revolut announced it was eyeing a US bank buyout while committing £3 billion and 1,000 jobs to its UK global headquarters. More recently, the fintech engaged with Israeli regulators to obtain a “lean bank” license after entering the country in 2023, demonstrating the company's willingness to pursue multiple regulatory pathways simultaneously. This article was written by Damian Chmiel at www.financemagnates.com.

Spot trading volume for tokenised stocks has surpassed $1 billion, with the vast majority of activity concentrated in December, Bitget reports. The surge highlights a sharp acceleration in demand for on-chain access to traditional equities outside standard market hours. The recent data confirms a broader shift in how global investors interact with traditional assets. Rather than waiting for U.S. market sessions to open, traders choose to react to macroeconomic and geopolitical developments in real time via tokenised instruments that trade continuously. The Real Arbitrage Is Geographic, Not Temporal After-hours trading often dominates the narrative; however, the global access appears to be a more durable and important driver. Tokenised stocks are increasingly used by investors outside the United States as an alternative way to gain exposure to U.S. equities without opening local brokerage accounts or bearing foreign exchange costs. Issuers such as Backed Finance have seen the market capitalisation of their tokenised equity products rise sharply, reflecting demand specifically from regions where direct U.S. market access is operationally complex or restricted. As one market participant described it, this is less about technology arbitrage and more about geography: a parallel access layer for U.S. equities serving the billions of investors who sit outside the domestic brokerage ecosystem.backed finance tokenized stocks hit $800m market cap, 30x growth crushing every other rwa vertical. baappl, btsla, bspx trade 24/7 on ethereum and solana. sec blocks us access so 6.5 billion people get us equity exposure without brokers or forex spreads. tokenized treasuries grew…— aixbt (@aixbt_agent) January 6, 2026 Regulators Draw Clear Boundaries Around Tokenised Securities Despite the rapid growth in activity, regulators have been explicit that tokenisation does not change the legal nature of securities. In the EU, ESMA has stressed technological neutrality. Tokenised shares remain transferable securities under MiFID II, not MiCA, which applies to non-security crypto-assets. U.S. regulators have taken a similar stance. The U.S. Securities and Exchange Commission (SEC) treats tokenised equities as securities that must be registered or issued under exemptions, with platforms operating as broker-dealers or alternative trading systems. In 2025, the SEC granted Depository Trust & Clearing Corporation a three-year no-action window to pilot on-chain tokenisation of stocks, bonds and Treasuries, effectively integrating the technology into existing clearing and settlement infrastructure rather than allowing it to develop outside it. Across jurisdictions, regulators have emphasised that tokenisation should deliver genuine efficiency gains, and not serve as a vehicle for regulatory arbitrage. What This Means for Traditional Brokers This on-chain activity is no longer a niche experiment. Major financial institutions are now forecasting a multi-trillion dollar future for the sector. A recent report from Deutsche Bank Research projects the market for tokenized real-world assets could reach $1.5 to $2 trillion by 2030, and as much as $4 trillion by 2035.“Tokenized capital markets could become the default infrastructure for issuance and trading by the 2030s.”- @DeutscheBank pic.twitter.com/kQm4LrS6Vy— Securitize (@Securitize) January 6, 2026For traditional brokers, the message is clear: their core business models, operations, and roles may change. While regulatory oversight remains anchored in existing frameworks, trading behaviour and liquidity formation are shifting from time-bound TradFi infrastructure to always-on gateways to traditional assets. The convergence is now less about whether tokenised stocks will be regulated, and more about whether global access to equities will remain restricted by legacy brokerage hours and geographic constraints—even as markets increasingly operate around the clock. This article was written by Tanya Chepkova at www.financemagnates.com.

bunq has submitted a fresh application for a US national bank charter with the Office of the Comptroller of the Currency, the Dutch neobank announced today (Wednesday). The move comes roughly two years after the company withdrew its initial attempt to enter the American banking market.Ali Niknam, the company's Founder and CEO, said the timing reflects what he sees as a favorable regulatory environment. "We believe that this is a unique opportunity for us," Niknam said in an interview.The company is betting on a market it knows well: professionals who split their time between the US and Europe but struggle to maintain banking relationships on both sides of the Atlantic. bunq's core audience includes digital nomads and expats who often hit roadblocks when trying to open accounts abroad, partly because of US tax reporting requirements that make foreign banks wary of American clients."We believe there's far more people out there that would benefit from this global bank account," Niknam said, pointing to millions of Europeans living in the US and Americans living in Europe who face banking access issues.Second Attempt Follows Broker-Dealer Winbunq isn't starting from scratch this time. The company secured a broker-dealer license from FINRA in October, which allows it to offer stocks, ETFs, and mutual funds to US customers. The firm wasn't alone in obtaining broker-dealer approval last year. Crypto platform Archax bought US broker-dealer Globacap Private Markets, while Hidden Road Partners secured FINRA approval shortly before Ripple's $1.25 billion acquisition of the company.The broker-dealer license was part of bunq's phased entry strategy. Now with the banking application filed, the company can move toward offering full deposit accounts and payment services if approved.bunq first applied for a US banking license in 2023 but withdrew the application in January 2024. Niknam acknowledged the firm wasn't ready to answer regulators' questions quickly enough. "We are doing our utmost best to make sure that we satisfy and fulfill each of the regulations," he said this time around.The company plans to launch in US cities with large expat populations first. One selling point: helping newly arrived expats build US credit scores by accessing their European financial records, something traditional American banks typically can't do.Growing User Base Amid European Dominancebunq hit 20 million users last year, making it Europe's second-largest neobank behind Revolut, which has more than 50 million customers. The milestone came a decade after bunq became the first company to receive a European banking permit in 35 years.The firm has built its business around features that appeal to mobile professionals, including support for 38 languages and AI-powered fraud detection. Last September, it became the first European neobank to offer flexible crypto staking through a partnership with Kraken, offering yields up to 10% annually without lock-up periods.bunq's US ambitions align with a broader push by fintech firms to secure American banking charters under the Trump administration. More than 30 companies have applied to become US banks since the administration took office, according to consulting firm Klaros Group. The OCC conditionally approved national trust bank charters for several crypto firms late last year, including Circle Internet Group and Fidelity's digital assets arm.The company also has its sights set on a UK electronic money institution license as it continues expanding beyond its European base. This article was written by Damian Chmiel at www.financemagnates.com.

Stripe and Crypto.com have partnered to expand access to cryptocurrency payments. The integration allows Stripe-supported merchants to accept crypto payments through Crypto.com Pay, in what the companies described as a step toward merging digital assets with mainstream commerce.Stripe Adds Crypto Payment OptionThrough the new setup, customers will reportedly be able to pay directly with cryptocurrency or stablecoins using their Crypto.com Pay balance.Stripe will then convert the received payment into the merchant’s local currency and deposit funds into their bank account, simplifying the process for businesses that want to accept crypto without dealing with price volatility.We are excited to be partnering with @stripe to help businesses more easily accept #crypto payments. Read more here: https://t.co/JwWQplJaGS pic.twitter.com/YfFaNg7hon— Crypto.com (@cryptocom) January 6, 2026Crypto.com becomes the first crypto firm integrated with Stripe for direct balance payments. The move broadens the payment giant’s reach in digital assets while offering a more convenient crypto checkout option to consumers.“Increasing everyday accessibility to and utility of cryptocurrencies for consumers and merchants is central to our vision at Crypto.com,” commented Joe Anzures, General Manager, Americas and EVP of Payments, Crypto.com. “We are excited to partner with Stripe, a recognized leader in digital payments, to collectively catalyze a new era for crypto-enabled commerce.”Crypto.com to Use Stripe for Card TransactionsIn addition to the checkout integration, Crypto.com will now use Stripe to process card-based crypto purchases. The arrangement allows users to buy cryptocurrencies with credit or debit cards more easily, supporting Crypto.com’s card products in the U.S. market.You may also like: Telegram’s Global Ambitions Hit a Wall as $500 Million in Bonds Freeze in RussiaCrypto.com has been keen in collaborating with the traditional fintech space. Last year, the crypto exchange enabled Google Pay support for all UK-issued Crypto.com Visa cards, allowing users to make tap-to-pay purchases with their Android devices at any merchant that accepts Visa or Google Pay.Exciting news for users with UK-issued https://t.co/vCNztATkNg Visa Cards! You can now enjoy contactless payments by adding your Card to Google Walletᵀᴹ ?? ? Add your Card now: https://t.co/uizkqIx8I2 ℹ️ Only available for UK-issued https://t.co/vCNztATkNg Visa Cards.… pic.twitter.com/B7L3nxq1ro— Crypto.com (@cryptocom) November 24, 2025This update sought to improve the day-to-day spending for cardholders using digital assets, further aligning crypto cards with traditional payment experiences in the UK. The company mentioned that UK customers can add their Crypto.com Visa cards directly via the Crypto.com app or through Google Wallet for use with Google Pay. This article was written by Jared Kirui at www.financemagnates.com.

Papaya Global is in advanced talks for a potential acquisition, with a valuation estimated between $3.5 billion and $4.5 billion, Calcalist reported. The company is negotiating with multiple international parties, including a private equity fund and enterprise software firms such as SAP and Oracle.Cross-Border Payroll Expands Across 160 CountriesPapaya Global provides software that helps corporate clients manage payments to employees and contractors worldwide. Its services include payroll management and a standalone business-to-business segment. [#highlighted-links#] The B2B segment accounted for around 40% of revenue in 2024 and is expected to reach about 55% in 2025. The company reported just over $100 million in revenue in 2024 and anticipates roughly $200 million in 2025, with profitability expected. Its cross-border payroll software operates in 160 countries and 130 currencies, supported by recent partnerships and acquisitions.Papaya Global Partners with dLocal GloballyIn 2024, Papaya Global partnered with cross-border payments provider dLocal. The collaboration aims to help businesses manage workforce payments across multiple regions, with a focus on emerging markets. The combined solution integrates payroll and payment processes, ensuring timely payments while meeting local regulations. Initially active in Latin America, Asia, and Africa, the partnership has improved payment volumes and delivery rates. Both companies plan to expand to additional regions, offering clients a more seamless global payment experience.Papaya Global was founded by Eynat Guez, who continues to serve as CEO. Guez has a background in relocation and payroll services and is considered the first woman in Israel to establish and lead a company to unicorn status.Fintech Unicorn Invests Millions Super BowlThe company is also seeking broader visibility through marketing, making its debut in the Super Bowl advertising arena, Finance Magnates reported last year. Papaya Global is using the campaign to highlight its vision for payroll and workforce management on a global scale. A 30-second Super Bowl ad costs over $8 million this year, according to Statista. The investment signals fintech’s "growing confidence" in reaching mainstream audiences. This article was written by Tareq Sikder at www.financemagnates.com.

Google will allow prediction market ads in the U.S. only for federally regulated firms, distinguishing CFTC-regulated event contracts from binary options, which remain prohibited. Starting January 21, 2026, Google will permit ads for “Exchange-Listed Event Contracts.” Only CFTC-authorized platforms, such as Kalshi, or brokerages registered with the NFA offering access to approved DCMs, may qualify. By setting these conditions, Google uses regulatory status as a primary criterion for access to its advertising platform. While the company is not acting as a financial regulator, its policy makes advertising access contingent on federal oversight of products. Why Google Allows Prediction Markets but Bans Binary OptionsUnder the updated rules, prediction markets are permitted to advertise only if the provider is licensed and regulated by the CFTC and categorised under Google’s “Financial Services” policies. Binary options, meanwhile, remain entirely prohibited, including ads from offshore platforms, affiliated educational websites, signal providers, and broker review sites.Google states that the distinction is based on consumer protection considerations. The company notes that binary options are frequently associated with misleading promotions, systemic abuse, and financial harm.The prediction markets are treated as supervised financial instruments rather than mass-market retail products, allowing advertising only for providers operating within a licensed and regulated framework where risk is considered manageable. What This Means for the Market The policy change reshapes the competitive landscape. Firms that have invested in obtaining CFTC approval gain access to one of the most influential advertising channels in the U.S. market, while unregulated platforms and binary options providers remain excluded. For platforms such as Kalshi and brokerages that offer access to regulated event contracts, the update removes a long-standing distribution constraint. At the same time, it reinforces the cost of remaining outside the federal regulatory perimeter, particularly for offshore and lightly regulated operators. The move highlights a trend in which technology platforms align advertising access with regulatory frameworks. In this case, Google’s policy ties market visibility to federal licensing status. This article was written by Tanya Chepkova at www.financemagnates.com.

Goldman Sachs pulled back its optimism on eToro, downgrading the stock from Buy to Hold and trimming its price target to $39 from $48. The move highlighted deepening competitive pressure as rivals chip away at eToro’s once-clear edge in social trading.Goldman’s analysts, led by James Yaro, said eToro’s growth trajectory lags behind its peers. The platform’s projected 7% annual top-line growth for 2025–2027 trails the peer average of 8%, while its 36% pre-tax margin looks thin next to the sector’s 54%.According to InvestingPro, eToro’s gross profit margin sits at just 2.51%, a stark contrast to its relatively strong balance sheet and a “GOOD” financial health rating.Social Trading Edge Faces Copycat RivalsDespite steady growth in assets under administration – reaching $18.8 billion in November, up 9% year-over-year – and a 10% rise in funded accounts to 3.79 million, profitability remains under strain. The challenge lies not in growth but in maintaining efficiency as competition heats up.eToro’s signature CopyTrader product once differentiated the platform, but U.S. peers now replicate similar features. Meanwhile, American trading platforms are expanding in Europe, historically eToro’s stronghold, Investing.com reported.Goldman warned that these developments could lift customer acquisition costs, already about 50% above peers, and apply downward pressure on product pricing and returns.Related: One-Third of eToro Trades Now Happen in 24/5 Extended Market HoursAs margins narrow, Goldman said eToro’s valuation of roughly 12.5x adjusted forward P/E appears fair but fails to justify a buy recommendation. The company trades at a P/E of 5.61, suggesting potential undervaluation on paper, yet lower-profit business lines and exposure to contracts for difference (CFDs) temper enthusiasm.Coinbase Shines in ContrastGoldman’s downgrade of eToro came alongside an upgrade of Coinbase (NASDAQ: COIN) to Buy, signaling the bank’s stronger conviction in crypto-aligned trading platforms heading into the new year. $COINJames Yaro @ Goldman Sachs upgraded Coinbase to a buy today with a PT of $303.That’s a 28% upside from current levels. pic.twitter.com/ZjKRZeorSY— FinanceIntel (@finance_intell) January 5, 2026They forecast Coinbase’s revenues to grow at a 12% CAGR through 2027, driven by lower acquisition costs and expanding subscription and service businesses, which now contribute around 40% of total revenue. While Coinbase shares gained 4% in premarket trading, eToro dipped about 1.2% to $35.27, extending a six-month decline of over 43%. Analysts remain split on eToro. While Compass Point, Susquehanna, and TD Cowen maintain bullish views with price targets as high as $66, Goldman’s caution underscores the uncertainty facing retail brokers navigating an evolving digital asset landscape.With competition intensifying and costs rising, the once-favored social trading pioneer may need to reinvent its strategy to hold investor confidence into 2026. This article was written by Jared Kirui at www.financemagnates.com.

Payments work best when they fade into the background. Yet, over the past decade, they have quietly migrated from the periphery of infrastructure to the very center of product design, customer experience, and regulatory debate. At a recent industry panel, executives from Weaver, Visa, Edenred, and regulatory advisory firms reflected on this evolution, exploring why the industry’s "frictionless" ideal remains more of a strategic aspiration than a day-to-day reality. The Shift: From Technical Process to Human Behavior The most significant transformation of the last decade isn't just the decline of cash, but the shift in how payments are perceived. Karin Martinez, Head of Sales at Edenred Payment Solutions, notes that payments have evolved from a purely technical process into a core user behavior. Today’s ecosystem is driven by an end-user demand for a triad of requirements: speed, safety, and minimal friction. However, the industry is moving away from the "zero friction" dogma. Regina Lau, CFO/COO at Weaver, argues that some friction is not only helpful but essential. The challenge lies in making friction context-sensitive. "If there’s low risk, let’s make it easy," she suggests. "But when something unusual occurs, that’s when friction must step in." This approach mirrors the "arms race" between fintechs and fraudsters, where both sides are constantly testing the limits of seamlessness. Invisible Security: Tokenization and AI For global giants like Visa, the last decade has been defined by the rise of alternatives to traditional card rails—specifically open banking and account-to-account (A2A) payments. Claire Dobson, Business Development Lead at Visa (UK & Ireland), highlights the surge in "pay-by-bank" solutions, which offer built-in strong customer authentication (SCA), making the deposit journey intuitive for users on trading and investment platforms. To balance transparency with security, Visa is leaning heavily into tokenization. By encrypting card credentials into unique tokens, the industry can eliminate the clunky one-time password (OTP) process while building biometric identification on top. This moves security into the background, turning checkout into a one-click experience without compromising safety. While AI is the primary weapon in this defense strategy, speakers cautioned against treating it as a panacea. Visa’s scam disruption tools have already blocked over a billion dollars in potential fraud, yet the human element remains a vulnerability. Lau pointed out that AI-driven transaction monitoring cannot fully replace the "human touch" required to protect vulnerable populations or handle complex, non-automated cases. The Liability Gap and "Smart" Regulation A recurring theme in the discussion was the structural imbalance in fraud prevention—specifically regarding social media. Panelists noted an "asymmetric liability" where a vast amount of fraud originates on social platforms that carry no financial responsibility, leaving banks and payment firms to play a reactive game of "whack-a-mole." To solve this, the panel advocated for treating fraud protection as a utility rather than a competitive advantage. Collaborative knowledge sharing and cleaner data governance are seen as the only ways to stay ahead of AI-equipped fraudsters. Furthermore, Martinez distinguished between "smart" and "bad" friction. While regulatory AML and KYC checks are protective necessities, the bureaucratic "paperwork purgatory" that many SMEs face during onboarding is a failure of innovation. The goal is to embed these checks so deeply into the technology that they become invisible to the legitimate user. The Frontier: Programmable Money and Global Interoperability Looking toward 2030, the industry is eyeing programmable money as the next major leap, with Nilixa DevLukia, CEO of regulatory consultancy Payments Solved, pointing to the convergence of central bank digital currencies (CBDCs), stablecoins, and tokenized deposits as the foundation of that shift. Combined with distributed ledger technology, programmable money could automate complex settlements. However, Devlukia also cautioned that without true interoperability and aligned regulatory frameworks, these capabilities risk remaining confined to domestic or siloed use cases rather than delivering global impact.Lau observed that global travel still requires a "fragmented wallet" of different apps for every jurisdiction. Extending local systems across borders is not just a technical challenge but a requirement for true financial inclusion. A Transition, Not an Endpoint The consensus was clear: the industry is in a state of negotiation rather than completion. Payments are faster and more embedded than ever, but friction has not been eradicated—it has simply been re-engineered into the layers of security and compliance. As the panel concluded, the focus for the next decade will not be on removing controls, but on designing "smart, invisible friction"—systems that protect the user without ever getting in their way. This article was written by Tanya Chepkova at www.financemagnates.com.

TheLondon-listed Fiinu (LSE: BANK) reported an unaudited group-wide net profit for November 2025, including exceptional items, marking its first time in the black since the fintech launched operations. The company cautioned that monthly performance will likely fluctuate as it works toward sustained profitability.Fiinu Posts First Profitable Month as Polish Unit Sheds ManagementThe milestone comes after Fiinu acquired Everfex for up to £12 million in a reverse takeover that doubled down on the fintech's expansion beyond its core Plugin Overdraft product. Everfex, which handled over $1 billion in FX transactions for Polish small and medium-sized enterprises, brought immediate revenue but also management headaches that Fiinu's board moved quickly to address.Within months of closing the deal, Fiinu replaced Karol Oleksa and Marta Oleksa with Dr. Marko Sjoblom, the company's founder and group CEO, who took direct control of Everfex alongside Adam Narczewski, a senior executive officer. The board said the appointments represent a "material strengthening" of executive capability and governance standards compared to the previous management.Fiinu then served formal non-compete breach notices against both former executives, alleging violations of restrictions in the share purchase agreement. The case is now in pre-trial proceedings. The company framed the action as necessary to protect shareholder value and enforce contractual obligations, though it did not disclose specifics of the alleged breaches.David Hopton, Fiinu's chairman, said the management changes emerged from a governance and compliance review conducted in the fourth quarter. "As the Executive and Board undertook this work it became apparent that changes in the management structure were likely to accelerate the integration of Everfex into the Group culture and discipline," he stated in the announcement.Cash Position Tightens Ahead of Product LaunchFiinu ended 2025 with approximately £5.34 million in cash, burning under £200,000 per month excluding exceptional items. The burn rate reflects cost cuts and operational changes implemented across the group, including the Polish subsidiary restructuring.The company is racing to launch its Plugin Overdraft product in partnership with Conister Bank, a unit of Manx Financial Group, in the first quarter of 2026. The open banking-enabled platform allows customers to attach an overdraft facility to their existing bank account without switching providers. Fiinu secured £1.4 million from Luxembourg-based QVP Fund in September to support working capital as it prepares the rollout.The Plugin Overdraft represents Fiinu's most significant commercial bet, aiming to unbundle credit services from traditional current accounts. Conister will initially offer the product to Payment Assist Limited's one million existing customers before expanding to its broader UK and Isle of Man client base.Polish Acquisition Adds Revenue but Brings RiskEverfex contributed over £600,000 in pre-tax profit during the four months ending April 2025, according to Fiinu's acquisition disclosures. The brokerage specializes in currency risk management for Polish import and export companies, offering competitive spreads and rapid response times that helped it grow its SME client base by 1,300% in 2024.The acquisition gave Fiinu immediate exposure to Poland's growing economy and a platform to cross-sell its banking technology. But the subsequent management overhaul suggests integration challenges that the board deemed serious enough to warrant immediate leadership changes and legal action.Hopton acknowledged the governance issues but emphasized the profitability milestone. "Together with the acquisition of Everfex, and our careful management of the cost base, Fiinu has achieved a major milestone in 2025 in recording its first profitable month," he said. This article was written by Damian Chmiel at www.financemagnates.com.

Doo Money Lender Limited, a subsidiary of Doo Group’s payment and exchange brand Doo Payment, has obtained a Money Lenders License from the Licensing Court of Hong Kong Companies Registry. The license formally permits the company to operate money lending services in Hong Kong under local regulations.Earlier, Doo Financial HK Limited, another Doo Group subsidiary, obtained a Type 1 Dealing in Securities license from the Hong Kong Securities and Futures Commission. The license allows the company to provide securities trading services, including dealing, distribution, underwriting, and placement activities, to clients in the region.Doo Money Lender Launches Licensed Loan ServicesThe company, incorporated under the Companies Ordinance, has established a professional team to provide loans to individuals and corporate clients. The license allows it to offer products including unsecured personal loans, property mortgages, and corporate financing. The company said, “Our adherence to Hong Kong’s rigorous Money Lenders Ordinance guarantees the legality and transparency of every credit service we provide.”Group Operates Across Multiple Global SectorsDoo Group, founded in 2014 and headquartered in Singapore, operates across ten business lines, including Brokerage, Wealth Management, Property, Payment & Exchange, FinTech, Financial Education, Healthcare, Consulting, Cloud, and Digital Marketing. Its entities are regulated by multiple global authorities and operate in cities including Dallas, London, Singapore, Hong Kong, Sydney, Cyprus, Dubai, Kuala Lumpur, Thailand, South Africa, and Egypt.Licensed Business Supports Group’s Financial ServicesThrough Doo Money Lender, the company said clients can access regulated credit solutions with enhanced fund security and privacy protection. The new licensed business is expected to complement Doo Group’s existing brokerage, wealth management, and payment services, providing integrated support for investment, capital turnover, and asset management.Doo Group Adjusts Regional OperationsBeyond its Hong Kong developments, Doo Group is making operational changes in other regions. Its brokerage arm, D Prime, appears to be vacating its Limassol office following staff layoffs, including the recent dismissal of its Cyprus-based marketing team. The company said it is “realigning its operational structure to enhance efficiency and concentrate resources within key strategic regions.” Separately, Doo Group confirmed that its Malaysian office was recently inspected by local authorities as part of a nationwide campaign, and stated that its operations remain fully compliant. This article was written by Tareq Sikder at www.financemagnates.com.

The prediction market platform Kalshi is exploring a potential expansion into Brazil in 2026 — a move that could test how far prediction markets can stretch the boundary between finance and betting outside the United States. In an interview with Brazilian newspaper Valor, Kalshi co-founder Luana Lopes Lara confirmed the company is considering entering the country. The timing is notable: Brazil is in the midst of a sweeping overhaul of its sports betting regime, creating a narrow but potentially strategic opening for products that do not fit neatly into traditional gambling definitions. As of January 2025, Brazil has implemented a strict regulatory framework for fixed-odds betting. Operators are required to obtain a dedicated licence, use a .bet.br domain, and comply with enhanced KYC rules, including mandatory facial recognition and a ban on credit-based betting. The framework is designed to formalise a market long dominated by offshore and grey-market operators. Where Betting Law Meets Financial Regulation This is where Kalshi’s strategy becomes relevant. In the United States, the company has consistently positioned its “event contracts” as financial instruments regulated by the Commodity Futures Trading Commission, rather than as gambling products subject to state-level betting laws. If Kalshi can advance a similar classification argument in Brazil, it could potentially operate outside the scope of the country’s new betting regime, which was built with traditional sportsbooks in mind. Such an outcome would offer a meaningful competitive advantage in a market estimated to be worth tens of billions of reals — while simultaneously testing the boundaries of Brazil’s regulatory definitions. The timing may prove decisive. Brazilian authorities are still finalising secondary legislation and technical standards through 2026, leaving room for regulators to determine how — or whether — prediction markets fit within the new framework. At the same time, the government’s stated objective is clear: to reduce unregulated activity and bring betting-adjacent products under formal oversight. Kalshi’s potential entry, therefore, is not simply a geographic expansion. It represents a broader regulatory experiment — one that could help define how prediction markets are treated in newly regulated jurisdictions beyond the United States. For regulators, the case raises a fundamental question: where does financial risk trading end, and betting begin? This article was written by Tanya Chepkova at www.financemagnates.com.

eToro has entered a new sponsorship agreement with Djurgårdens IF Fotboll, one of Sweden’s “oldest and prominent” football clubs. The deal includes LED visibility at matches and exclusive hospitality experiences for eToro’s top-tier clients.The partnership follows eToro and Nasdaq’s expansion to provide real-time trading data for more than 210 additional stocks listed on Nasdaq’s Nordic exchanges in Stockholm, Helsinki, and Copenhagen. Global retail clients will have complimentary access, making eToro the first non-Nordic broker to offer this data. Retail participation in Nasdaq Nordic markets has increased from 7.7% in 2018 to 10.6% in the first quarter of 2025. Companies listed include Volvo, H&M, Nokia, and Novo Nordisk.eToro Expands Operations in Nordic RegionDjurgårdens IF was founded in 1891 and has played a central role in Swedish football. The club maintains “a large and active fan base.”eToro said the partnership aligns with its focus on the Nordic market, where retail investor participation is high. The company described Sweden as “a true investment hub” and plans to expand its local offerings, including payment methods and investment products.eToro Extends Football and Rugby Sponsorship AgreementsSeparately, eToro has extended its sports sponsorships across Europe. The firm signed a multi-year agreement to become the Official Trading Partner of Nottingham Forest FC for the 2025/26 season, covering both men’s and women’s teams. In 2025, eToro began sponsoring Premiership Women’s Rugby, supporting both men’s and women’s competitions. The company has also extended its sponsorship of Dutch football club AZ Alkmaar, initially established in 2023, through 2027, including matchday visibility at the AFAS Stadium and content collaborations with players and events for clients.The Nottingham Forest partnership comes amid broader changes in Premier League sponsorship rules. The UK is preparing to prohibit betting firms from displaying logos on the front of shirts, currently valued at £101.1 million across 11 clubs, creating opportunities for non-betting brands like eToro. This article was written by Tareq Sikder at www.financemagnates.com.

The National Bank of Ukraine (NBU) has clarified the reason behind fintech giant Revolut's recent decision to close accounts for its Ukrainian residents, stating that any firm wishing to offer financial services in the country must first obtain a local license and adhere to Ukrainian law. The statement comes after Revolut, one of the most valuable startups in Europe's most valuable startup, began notifying its Ukrainian users that their accounts, opened through its Lithuanian entity, would be closed within 60 days. In April 2025, Revolut suspended new client registrations from Ukraine after the National Bank of Ukraine reiterated that the company was operating without a local licence.While the initial news caused confusion and concern, the NBU's comments reframe the situation not as a permanent exit, but as a regulatory impasse.What the NBU Is SayingThe central bank emphasized that its rules are the same for all market participants and that it had previously provided Revolut with "comprehensive clarifications" on the necessary authorization procedures. "The rules are the same for everyone—any company that intends to provide financial services to residents of Ukraine must go through the authorization procedure in accordance with the requirements of Ukrainian legislation," the NBU stated in a press release. The regulator confirmed that Revolut had informed them of its intention to suspend services and stressed that the door remains open for the company to re-enter the market legally."We remain open to regulatory dialogue with the Revolut company and welcome any properly authorized form of this company's presence in the financial market of Ukraine," the NBU noted, adding that it would ensure a "prompt review" of any application package. Crucially, the NBU also clarified that the account closures will not affect Ukrainian refugees who are officially registered and residing in the European Economic Area. Their accounts will continue to be serviced by Revolut. For Revolut, a company with global ambitions and a potential IPO on the horizon, the situation in Ukraine is a clear example of the challenges that global fintechs face when scaling into jurisdictions with robust and assertive national regulators. The company must now decide on its future strategy for the Ukrainian market, weighing the benefits of obtaining a local license against the costs and complexities of full regulatory compliance. This article was written by Tanya Chepkova at www.financemagnates.com.

Revolut is in early talks with private equity firm Blackstone over a potential partnership that would allow Revolut customers to access Blackstone’s investment funds. The discussions centre on integrating Blackstone products into Revolut’s planned private banking offering. If the deal goes ahead, it would signal Revolut’s shift from retail finance toward private banking and wealth management. For Blackstone, the talks reflect an effort to expand distribution to a new generation of affluent investors through digital platforms.Revolut’s Move into Private BankingThe potential partnership aligns with Revolut’s broader push to target wealthier clients. The company has been expanding its private markets team and hiring investment bankers and private capital advisers to develop products for high-net-worth individuals. In a recent job posting, Revolut described its private banking initiative as focused on building long-term relationships with high-net-worth clients globally. Private bankers would be responsible for managing defined market segments, overseeing client acquisition and activation, and supporting more complex financial needs—an approach that closely mirrors traditional private banking models rather than mass-market fintech services.Private Capital and Fintech Converge on Affluent Clients For Blackstone, a tie-up with Revolut—whose platform serves nearly 70 million users globally—would provide direct access to a large and growing pool of affluent and mass-affluent clients as the firm looks beyond institutional investors for new sources of funding. Blackstone has tripled the number of private banks and wealth managers it works with in Europe over the past two years as part of a broader distribution strategy. Similar dynamics are emerging elsewhere in the industry as other private capital firms are pursuing comparable routes, with recent initiatives linking Apollo Global Management with EQT with German neobroker Trade Republic. The potential Revolut–Blackstone partnership highlights how the traditional boundary between retail fintech platforms and private banking is narrowing, reshaping competition across brokerage and wealth management. For firms moving into this space, success will depend on execution, regulatory compliance, and their ability to meet the expectations of a more sophisticated client base. This article was written by Tanya Chepkova at www.financemagnates.com.

“There’s a much greater willingness for individuals to put forward a good idea, get quick sign-off, build something—and accept that sometimes it will fail.”That observation, offered by Charlotte Bullock, Head of Product at The Bank of London, captured a recurring tension at the Finance Magnates London Summit 2025: how far banks can push speed and experimentation without undermining the discipline on which financial services is built.Speaking with Jonathan Fine, Content Strategist at Ultimate Group, Bullock contrasted her experience at SAP—a global software group with more than 100,000 employees—with her current role at one of the UK’s newest principal clearing banks. The difference, she said, is not simply scale but mindset. In smaller institutions, leadership is accessible, approval chains are short, and ideas can move quickly from concept to prototype. In large corporates, by contrast, “the signoff hurdles are large,” and by the time projects begin, “the use case or utility isn’t there.”Scale Shapes Decision-MakingThat cultural shift is shaping how The Bank of London approaches innovation. Rather than treating new technologies as isolated experiments, the bank is embedding them directly into its operating model. Bullock pointed to artificial intelligence as an example, noting that the focus has moved from experimentation to application. “We’re really embedding those use cases into our workflows,” she said, citing a production AI assistant trained on the bank’s own APIs and internal data.Bank of London is a banking, payments, and clearing partner for businesses, providing secure and technologically advanced financial solutions. According to the bank, it reduces the complexity of traditional banking, offering faster, more flexible ways for clients to hold and move money while supporting business operations.From AI to ImplementationThe assistant, she explained, supports clients during integration by helping generate code and identify the right endpoints—part of what she described as “that willingness to use new technology and tooling,” combined with a tight feedback loop from clients on what they actually need.Client Feedback Drives Product ChoicesTokenisation is another area where that feedback is shaping priorities. Bullock described growing demand from clients for continuous, round-the-clock access to capital. “They don’t want to wait for cutoff times,” she said, adding that cross-border clients in particular want to avoid fees that ultimately get passed on to end users. With all client money held at the Bank of England, she framed on-chain development as “a very logical place to start” for the bank.Tokenisation and Capital AccessNot all clients, however, are equally able to move at speed. Bullock said innovation tends to start with “pathfinder” institutions, particularly financial firms serving emerging markets through remittances and cross-border payments. These clients, she noted, are “really driving that change,” because they need to move money quickly and operate across borders.In our latest Fintech Focus TV episode, Toby sits down with Christopher Horne (CEO) and Tam Holmes (CCO) of @_bankoflondon live from Pay360 at ExCeL London. https://t.co/BVW6v4g8GW#Fintech #DigitalBanking #HarringtonStarr @ThePAssoc pic.twitter.com/7RzLGI8oqz— Harrington Starr (@HarringtonStarr) May 19, 2025Uneven Pace Across MarketsTheir biggest constraint is often infrastructure rather than ambition. Bullock contrasted the UK’s data-rich environment—where tools like Companies House make it “incredibly simple” to validate ownership structures—with markets where similar information is fragmented or paper-based. “They want that smooth, quick onboarding experience,” she said, but enhanced checks are often unavoidable, creating delays.Data Limits SpeedFounded as the UK’s sixth principal clearing bank, The Bank of London operates with the same licence as established institutions but positions itself as a challenger. Its core offerings—accounts, embedded banking, and payments clearing and settlement—are aimed primarily at regulated financial institutions that lack deposit-taking permissions. Embedded banking, Bullock said, allows clients to “offer the service to their customers,” while the bank provides the underlying infrastructure.Challenger Positioning in BankingLooking ahead, the emphasis is less on spectacle than execution. Bullock pointed to the continued evolution of the bank’s developer studio and APIs, alongside further investment in automation. The aim, she said, is “making that onboarding process as seamless as possible.”For an industry still balancing innovation with trust, her message was pragmatic. Moving fast, in Bullock’s telling, is not about ignoring risk—but about closing decision loops quickly enough to ensure that ideas still matter by the time they reach the market. This article was written by Tareq Sikder at www.financemagnates.com.

Robinhood has moved into direct competition with traditional sportsbooks by expanding its prediction markets with new parlay-style contracts tied to NFL games. The launch signals a deeper push into event-based trading and marks the segment’s transition from an add-on product to a material revenue contributor. What sets the business apart is its scale and user engagement. Analysts estimate Robinhood’s prediction markets division is tracking toward roughly $300 million in annual revenue. The segment has also been cited as one of the factors supporting the company’s strong stock performance in 2025. According to Mizuho analyst Dan Dolev, Robinhood has identified a product that closely aligns with its retail user base. Robinhood users are significantly more likely to engage with prediction markets than the general public, supporting higher activity levels and repeat participation. That dynamic is reflected in the platform’s trading data. Since launching prediction market contracts in March, more than 9 billion contracts have traded on Robinhood, with over one million users participating. In the third quarter alone, trading volumes reached approximately 2.3 billion contracts. Activity accelerated further in the following months, rising to 2.5 billion contracts in October and exceeding 3 billion in November.From Financial Contracts to Sports-Linked Events The latest expansion applies familiar sports-betting mechanics to regulated event contracts. Robinhood users can now trade preset combinations of NFL game outcomes, with custom combinations expected to launch in 2026. The platform has also introduced live contracts tied to individual player performance metrics, including passing yards and points scored. JB Mackenzie, Robinhood’s general manager of futures and international, said the company views prediction markets as a durable part of its product strategy, citing sustained customer demand. Beyond sports, Robinhood is exploring ways to link contracts across multiple event categories, potentially allowing users to combine outcomes tied to economic data, climate-related events, or political developments. The expansion has also attracted regulatory scrutiny. Earlier this year, state regulators in Connecticut issued cease-and-desist orders to several prediction market platforms, including Robinhood, arguing that sports-linked event contracts resembled unlicensed sports betting under state law. The episode highlighted ongoing uncertainty around the boundary between state-level gaming rules and federally regulated event-based derivatives.A Structural Shift Toward Event-Based Markets Robinhood’s move reflects a wider shift across trading and derivatives markets. Traditional brokers, crypto firms, and exchange operators are increasingly treating event-based contracts as a distinct asset class rather than a niche product. Plus500 recently entered the space as a clearing partner for CME Group and FanDuel’s event-based contracts platform, underlining growing institutional interest in the model. Robinhood has signalled similar ambitions at the infrastructure level. The company has announced plans to operate a regulated futures and derivatives exchange alongside its consumer-facing platform, subject to regulatory approval. If realised, the move would further integrate prediction markets into Robinhood’s broader financial ecosystem. Collectively, these developments suggest prediction markets are becoming a more established component of modern financial platforms rather than experimental offerings. For Robinhood, the segment provides a meaningful additional revenue stream while extending user engagement beyond traditional asset classes. How far the model can scale, however, will depend on how regulatory frameworks evolve to accommodate event-based trading. This article was written by Tanya Chepkova at www.financemagnates.com.