Brokerage app Robinhood has quickly become a force in prediction markets, challenging the hold of Kalshi and Polymarket on the popular betting market.

Robinhood’s prediction markets revenue surged more than tenfold year over year in the second quarter to $156 million, the company reported last week, as part of its second-quarter earnings update. Prediction markets accounted for 20% of Robinhood’s trading revenue in the quarter, eclipsing both stock and crypto revenue for the first time and becoming its second-largest trading business after options.

Coinbase reported second-quarter revenue fell 19% to $1.2 billion from a year ago, the third consecutive quarterly decline. It will renew its revenue-sharing agreement with Circle on the same terms next month, said Coinbase CEO Brian Armstrong.

Coinbase is the biggest distributor of Circle’s ...