Robinhood takes stakes in Crypto.com and its prediction-markets business

Robinhood Markets is partnering with OG.com to provide infrastructure and clearing for its prediction-markets offering. The move will give the brokerage access to OG.com’s CFTC-regulated derivatives exchange and clearinghouse as it expands its event-contract business.

Under the multiyear agreement, Robinhood will route retail prediction-market volume through OG.com’s underlying exchange infrastructure. Robinhood Derivatives, a CFTC-registered futures commission merchant and NFA member, will continue to offer prediction markets on the Robinhood app, the companies said.

OG.com said the partnership will be its largest B2B prediction-markets deal based on transaction volume, with the first OG.com-backed contracts rolling out to eligible US customers beginning Sept. 8.

Robinhood will also receive initial equity stakes in OG.com and Crypto.com following OG.com’s spin-off as an independent trading platform. The stakes will be priced based on Citadel Securities’ investment in the Crypto.com Group at a $20 billion valuation, while OG.com has a standalone valuation of $5 billion.

The companies said the partnership will support greater liquidity, faster clearing and expansion into sports, macroeconomic, financial and other event contracts, with OG.com also targeting futures and perpetuals.