Robinhood is deepening its push into prediction markets by taking ownership positions in Crypto.com and OG.com and signing a multiyear agreement to source more contracts and clearing capacity. The brokerage did not disclose how large the stakes are. Pricing will follow Citadel Securities' recent investment that marked Crypto.com and its units at $20 billion in total, with OG.com valued on its own at $5 billion.
OG.com, a prediction-markets platform spun out of Crypto.com, operates regulated derivatives businesses that list contracts on sports, the economy, financial markets and culture. Under the arrangement, Robinhood will channel its retail event-contract volume through OG.com's US exchange and clearinghouse, which are overseen by the Commodity Futures Trading Commission. Contracts backed by OG.com will start rolling out to eligible US customers on Sept. 8. JB Mackenzie, the executive overseeing futures and prediction markets at Robinhood, said, "Teaming up with Crypto.com and OG.com strengthens our position as a leader in the prediction-markets space and gives us even more skin in the game."
Prediction markets are seeing a surge in interest from retail traders, and Robinhood has been building for it. CEO Vlad Tenev has called the predictions unit the company's fastest-growing business. Together with partner Susquehanna International Group, the company owns the derivatives exchange Rothera, and Tenev has said it is now among the three largest designated contract markets.
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For Robinhood, OG.com brings another source of contracts and ready-made clearing, which can speed up product launches as the category heats up. There is also a strategic angle: Kris Marszalek, the founder and CEO of Crypto.com and OG.com, said, "We're looking forward to making OG.com the most liquid venue globally for innovative derivative instruments, starting with prediction markets and quickly expanding into futures and perpetuals." By 10:30 a.m in New York, Robinhood's stock was higher by 0.9%. If prediction markets keep gaining traction, more liquid venues and faster rollouts could mean more choices and sharper odds for everyday traders.
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