Robinhood Takes Stakes in Crypto.com and OG.com to Bolster Prediction Market Infrastructure
Riding the momentum of its prediction market growth, Robinhood has taken equity stakes in Crypto.com and OG.com as part of a multi-year deal. The move allows eligible customers to route event contracts through OG.com's CFTC-regulated derivatives exchange and clearinghouse.
According to an announcement from Robinhood, the partnership gives the brokerage access to a regulated infrastructure for its prediction markets. This infrastructure is crucial for Robinhood as it scales up its offerings in the US, where prediction market products are facing intensifying state-level legal scrutiny.
The deal values OG.com at $5 billion, and Robinhood's equity stakes were priced using the valuations set by Citadel Securities' earlier investment in both Crypto.com and OG.com. The companies did not disclose the exact number of shares or dollar value of Robinhood's holdings.