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Robinhood Markets has selected OG.com, the CFTC-regulated derivatives exchange spun out of Crypto.com, as the infrastructure and clearing provider for its prediction markets business, the companies announced on September 8.
Robinhood Derivatives, a CFTC-registered futures commission merchant, began routing retail event contracts through OG.com's exchange and clearinghouse the same day, with a phased rollout to eligible US customers.
As part of the multi-year agreement, Robinhood will take equity stakes in both Crypto.com and OG.com, priced in line with the terms of Citadel Securities' recent $400 million investment in Crypto.com at a $20 billion valuation. OG.com was spun off as an independent entity valued at $5 billion following that investment, giving it dedicated capital to scale prediction markets covering sports, financial, economic and cultural events separately from Crypto.com's broader exchange business.
"We're looking forward to making OG.com the most liquid venue globally for innovative derivative instruments, starting with prediction markets," said Kris Marszalek, founder and chief executive of Crypto.com and OG.com. JB Mackenzie, Robinhood's vice president and general manager of futures and prediction markets, said "prediction markets are becoming an increasingly meaningful way for investors to engage with the events they care about."
The deal is OG.com's largest prediction-markets partnership by transaction volume to date, according to Crypto.com, and lands as Robinhood has been building out event contracts covering sports outcomes, economic data releases and other real-world events as a complement to its stock and crypto trading business. The rollout's timing, coinciding with the start of the NFL season, positions sports-related contracts as an early driver of volume through the new arrangement.
Neither company disclosed the size of Robinhood's equity stake in Crypto.com or OG.com. The partnership deepens a relationship between the two companies as prediction markets have drawn increasing competitive interest from exchanges and brokerages seeking to capture retail trading volume around live events.
