Robinhood Partners with Crypto.com to Expand Prediction Markets

Robinhood (NASDAQ: $HOOD) is expanding its prediction markets business by partnering with Crypto.com and its newly independent derivatives platform, OG.com, as demand for event contracts continues to surge.

Under the agreement announced Tuesday, Robinhood will begin routing a portion of its football prediction contracts to OG.com's CFTC-regulated exchange and clearinghouse. The first contracts are expected to go live today, ahead of the new professional football season.

Robinhood will also receive equity stakes in Crypto.com and OG.com following OG.com's planned spin-off as an independent trading platform. The stakes will be valued in line with Citadel Securities' recent investment in Crypto.com Group, which valued the company at $20 billion. The deal also puts OG.com's standalone valuation at $5 billion.

"Routing event contracts to multiple venues helps create a stronger, more diverse and resilient marketplace," JB Mackenzie, VP and GM of futures and prediction markets at Robinhood, said.

The partnership comes as Robinhood's prediction markets business posts record activity. The company said customers traded 13.6 billion event contracts in the second quarter, while more than 5 billion contracts changed hands during the World Cup alone.