Robinhood's Crypto.com Partnership Brings Liquidity to Event Contracts
Retail broker Robinhood has partnered with Crypto.com and OG.com to provide liquidity for event contracts through its platform. This partnership is a capital-backed routing deal, where Robinhood will hold equity in both companies. The stake size remains undisclosed, but it's priced at a $20 billion valuation, based on Citadel Securities' recent mark.
The partnership allows Robinhood to route selected football event contracts to OG.com through Crypto.com's CFTC-regulated exchange and clearinghouse, CDNA/OG.com. This move is seen as a way for Robinhood to gain more control over the flow of its retail customers into the market, rather than relying on external vendors.
Raise questions about the deal include the lack of transparency around the stake size, ownership percentage, and venue-share economics. The partnership also raises concerns about the concentration of volume in a single exchange, despite the company's claims to maintain a multi-venue book.