Robinhood will hold initial equity stakes in Crypto.com and OG.com as part of the deal, following OG.com’s spin-off as an independent trading platform
Robinhood Markets has entered into a new agreement with Crypto.com’s newly spun off prediction market platform OG.com.
The multi-year deal designates OG.com as an infrastructure and clearing provider for Robinhood’s prediction markets offering.
Robinhood will route retail event contract volume through OG.com’s underlying Commodity Futures Trading Commission (CFTC) regulated derivatives exchange and clearinghouse architecture.
The agreement will represent OG.com’s largest B2B prediction markets partnership in terms of transaction volumes.
“This is the beginning of a strategic partnership between both companies,” said Kris Marszalek, founder and CEO of Crypto.com and OG.com. “We’re looking forward to making OG.com the most liquid venue globally for innovative derivative instruments, starting with prediction markets and quickly expanding into futures and perpetuals.”
The partnership follows Citadel Securities investment into Crypto.com at a $20 billion valuation, which includes a standalone $5 billion valuation of OG.com through its strategic spin-off from Crypto.com.
Crypto.com said that by separating from the core digital asset exchange infrastructure, OG.com will operate as an independent company with dedicated capital allocation focused exclusively on scaling its direct consumer experience and deepening its CFTC-regulated framework across sports, financials, and economic contract markets and margined derivatives.
As part of the deal, Robinhood will hold initial equity stakes in Crypto.com and OG.com, which will be priced in line with the recent investment of Citadel Securities
The rollout of OG.com-backed event contracts on the Robinhood app will begin in phases to eligible US customers this week.
“Teaming up with Crypto.com and OG.com strengthens our position as a leader in the prediction markets space and gives us even more skin in the game,” said JB Mackenzie, vice president and general manager of Futures and Prediction Markets at Robinhood. “Prediction markets are becoming an increasingly meaningful way for investors to engage with the events they care about, and this deal helps us meet our growing customer demand.”
Shares in Robinhood Markets Inc (NASDAQ:HOOD) closed 1.76 per cent lower at $115.28 per share in New York Wednesday.