Robinhood Teams Up with Crypto.com for Prediction Market Expansion
Robinhood is teaming up with Crypto.com to expand its prediction market offerings. The partnership will see Robinhood route a portion of event contracts to OG.com, a CFTC-regulated exchange and clearinghouse operated by Crypto.com. This marks a significant development in the convergence of traditional brokerages and crypto platforms within regulatory constraints.
The collaboration is set to begin on September 8, with Robinhood's prediction markets experiencing record highs in revenue and trading volume over the first eight months of this year. In June, the company began routing contracts to Rothera, a CFTC-licensed exchange and clearinghouse operated by a joint venture between Robinhood and Susquehanna International Group.
Routing event contracts to multiple venues is seen as a way to build a stronger, more diverse market. The partnership with Crypto.com and OG.com comes at an opportune time, ahead of the start of the professional football season and the U.S. midterm elections. Robinhood's prediction markets are poised for growth, with the company expecting to expand event contract routing and launch new product features.