Online brokerage Robinhood has announced the launch of a prediction market within its app, allowing users to place contracts based on the outcomes of major global events.

According to Jay B. Mackenzie, Robinhood’s Vice President, the new feature “will comply with existing regulations.”

At launch, the platform will offer contracts predicting the Federal Reserve’s target interest rate cap in May and the results of NCAA basketball tournaments for both men and women.

Mackenzie emphasized that prediction markets serve as an important tool at the intersection of economics, politics, sports, and culture.

The market will initially be available across the United States through KalshiEX LLC, a CFTC-regulated exchange.

“Over the past few weeks, we have closely collaborated with [the regulator] and look forward to continuing our work in driving innovation in futures, derivatives, and crypto markets,” Robinhood stated in a press release.

On March 7, Robinhood agreed to pay a $29.75 million fine to settle FINRA violations related to compliance and supervisory failures.

Previously, the CFTC requested client data from Coinbase as part of an investigation into Polymarket, a betting platform under scrutiny since late 2021.