Robinhood takes stakes in Crypto.com, OG.com in prediction markets deal
Robinhood has struck a multi-year deal with Crypto.com and its spun-off prediction market platform, OG.com, to route retail event contracts through OG.com’s CFTC-regulated exchange and clearinghouse. The rollout starts Tuesday for eligible U.S. customers. As part of the agreement, Robinhood will receive initial equity stakes in both Crypto.com and OG.com, valued at the same level as a prior Citadel Securities investment, though the size of the stakes was not disclosed. OG.com recently spun off from Crypto.com at a $5 billion valuation and plans to expand beyond prediction markets into futures and perpetual contracts. The move extends Robinhood’s fast-growing prediction markets business, which generated $156 million in Q2 revenue, outpacing its equities and crypto trading revenue. However, the sector faces mounting legal challenges from states arguing sports event contracts should be regulated as gambling rather than swaps under CFTC oversight.
