Robinhood Teams Up with OG.com to Launch Prediction Markets
Retail trading platform Robinhood has partnered with OG.com to offer prediction markets on its platform. As part of the multi-year agreement, Robinhood will route retail event contracts through OG.com's exchange and clearinghouse, which is regulated by the CFTC. This move marks a significant expansion into derivatives for Robinhood, which has been building out event contracts covering sports outcomes, economic data releases, and other real-world events.
The partnership also sees Robinhood take equity stakes in both Crypto.com and OG.com, priced in line with Citadel Securities' recent $400 million investment in Crypto.com at a $20 billion valuation. OG.com was spun off as an independent entity valued at $5 billion following that investment, giving it dedicated capital to scale prediction markets.
Kris Marszalek, founder and CEO of Crypto.com and OG.com, said 'We're looking forward to making OG.com the most liquid venue globally for innovative derivative instruments, starting with prediction markets.' Robinhood's vice president and general manager of futures and prediction markets, JB Mackenzie, added that 'prediction markets are becoming an increasingly meaningful way for investors to engage with the events they care about.'