Robinhood Takes Equity Stake in Crypto.com, Taps Exchange to Power Prediction Markets

In brief

• Robinhood and Crypto.com’s OG.com, announced a multi-year deal Tuesday making OG.com an infrastructure and clearing provider for Robinhood's Prediction Markets platform.
• Robinhood is taking minority equity stakes in both Crypto.com and OG.com
• HOOD shares climbed roughly 3.4% in premarket trading to around $126, and Crypto.com's CRO token jumped toward a weekly high near $0.063 on the news.

Robinhood is buying its way into the machinery behind its own prediction markets business. The trading app announced Tuesday it will take minority equity stakes in both Crypto.com and OG.com, the prediction markets platform Crypto.com launched as a standalone app back in February and has now spun off into its own separately capitalized company.

Prediction markets let people trade contracts on whether something will actually happen—a Federal Reserve rate cut, an election result, who wins Sunday's game—instead of betting through a traditional sportsbook. Polymarket is among the most popular, but there are others like Kalshi or Myriad, which is developed by Decrypt’s parent company Dastan.

Robinhood has turned that idea into its fastest-growing product line, and this deal is about who handles the plumbing underneath it.