Robinhood Rises on Deals with Crypto.com and OG.com
Robinhood's shares (HOOD) rose by 1% to $123 on Tuesday morning following an announcement from the online trading platform.
The company revealed new deals with Crypto.com, a crypto exchange, and OG.com, a prediction market platform. Under a multi-year agreement, Robinhood has selected OG.com to provide infrastructure and clearing services for its prediction market offerings.
This comes as prediction markets have emerged as Robinhood's biggest revenue earner, with event-contract revenue soaring by over 1000% in the second quarter to $156 million. This figure is ahead of crypto revenue at $100 million and equities at $129 million.
RH plans to launch OG.com-backed event contracts on its app for eligible U.S. customers in phases, starting today. JB Mackenzie, a vice president at Robinhood, noted that the partnership with Crypto.com and OG.com boosts the brokerage's position in the prediction market space, giving it more 'skin in the game.'