Robinhood Takes Stakes in Crypto.com and OG.com for Prediction Market Push

Retail trading platform Robinhood is expanding its presence in prediction markets by taking ownership stakes in Crypto.com and OG.com. The company has signed a multi-year agreement to source more contracts and clearing capacity from these platforms.

The terms of the deal are not disclosed, but the valuation of Crypto.com's units at $20 billion in total and OG.com at $5 billion gives an idea of the significance of this move. Robinhood will channel its retail event-contract volume through OG.com's US exchange and clearinghouse, which is overseen by the Commodity Futures Trading Commission.

This partnership is expected to boost Robinhood's position as a leader in prediction markets. 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.'

The surge in interest from retail traders has made prediction markets one of Robinhood's fastest-growing units. With this partnership, the company is looking to speed up product launches and provide more choices for everyday traders.