Robinhood Expands Prediction Markets With Crypto.com Deal - Robinhood Markets (NASDAQ:HOOD)

Robinhood Markets Inc. (NASDAQ:HOOD) is expanding its prediction markets business through a multiyear deal with Crypto.com, according to The Wall Street Journal.

Robinhood will add contracts from Crypto.com’s prediction-markets platform, OG, to its app and take minority stakes in both Crypto.com and OG.

The Journal reported Tuesday that the move comes as Robinhood builds out a prediction-markets network that already includes Kalshi and Rothera, an independently managed exchange venture with Susquehanna International Group.

Why Robinhood Wants Another Venue

JB Mackenzie, who runs Robinhood’s futures and prediction markets business, told the Journal the Crypto.com deal would allow the brokerage to offer better pricing and a wider range of contracts, while giving Robinhood more “skin in the game.”

Crypto.com CEO Kris Marszalek told the Journal that OG has grown about 20-fold this year. He said bringing its contracts onto Robinhood could draw more retail and institutional trading to the platform, with institutions particularly interested in trading against retail flow.

Robinhood gets another source of contracts and pricing, while OG gets access to Robinhood’s retail customer base.

Prediction Markets Are Already Big Business