Robinhood Expands Prediction Markets Through Crypto.com and OG.com Tie-Up
Routine markets are growing in importance for Robinhood Markets as it expands its business through partnerships. The company has teamed up with Crypto.com and OG.com to expand its prediction markets. Under this deal, Robinhood will route some of its football prediction contracts to OG.com's derivatives exchange.
The agreement also values OG.com at $5 billion following its planned spin-off as an independent trading platform. Robinhood will receive equity stakes in both Crypto.com and OG.com, with the stakes priced in line with Citadel Securities' recent investment in Crypto.com Group, which valued the company at $20 billion.
The partnership comes as prediction markets become a significant part of Robinhood's business. In the second quarter, customers traded a record 13.6 billion event contracts, generating a record $156 million in revenue from these products.