Robinhood Takes Stake in Crypto.com and OG.com Amid Prediction Markets Boom

Robinhood Markets has taken an equity stake in Crypto.com and OG.com as part of its plan to expand its prediction markets business. The move comes after Robinhood's prediction markets unit outpaced its crypto business in revenue for the first time, generating $156 million in the second quarter.

The deal is valued at a $20 billion valuation, mirroring Citadel Securities' recent investment into Crypto.com Group. This marks a significant shift in focus for Robinhood, which has seen its prediction markets unit grow rapidly over the past two years, with over 45 billion contracts traded since its launch.

As part of this expansion, Robinhood will route football event contracts to OG.com's CFTC-regulated exchange and clearinghouse, opening up a new destination for customers. This move is expected to reduce Robinhood's dependence on any single exchange, spreading order flow across multiple venues.