Robinhood has taken fairness stakes in Crypto.com and its newly spun-off prediction market platform OG.com as a part of a multi-year deal to make use of OG.com’s regulated infrastructure for occasion contracts.
Below the settlement, Robinhood will route retail occasion contracts by OG.com’s Commodity Futures Buying and selling Fee (CFTC)-regulated derivatives trade and clearinghouse, with the rollout starting Tuesday for eligible US prospects.
In response to Tuesday’s announcement, the net brokerage will obtain preliminary fairness stakes in each Crypto.com and OG.com, with the stakes priced on the valuations established by an earlier Citadel Securities funding within the platforms. The businesses didn’t disclose the dimensions or worth of Robinhood’s holdings.
The deal follows OG.com’s spin-off from Crypto.com at a $5 billion valuation and comes lower than two months after stories that Robinhood was in talks with Crypto.com to increase its prediction markets providing.
OG.com will function independently from the crypto trade, with CEO Kris Marszalek saying the platform plans to increase past prediction markets into futures and perpetual contracts.
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Newest transfer expands prediction market partnerships
Robinhood launched its prediction markets hub in March 2025 with CFTC-regulated trade Kalshi and later expanded its prediction market infrastructure.
The enterprise has grown quickly. Occasion contracts generated $156 million in income for Robinhood within the second quarter, up greater than tenfold from a 12 months earlier and surpassing its $129 million in equities transaction income and $100 million from crypto.
Bernstein analysts estimated in July that Robinhood’s income, together with prediction markets, might attain $1.7 billion by 2028.
To make certain, prediction market operators have additionally confronted a rising variety of authorized challenges from US states searching for to use their playing legal guidelines to sports activities occasion contracts.
In April, a Nevada decide prolonged a ban stopping Kalshi from providing occasion contracts within the state with no gaming license, discovering that the merchandise had been successfully indistinguishable from conventional betting. The ruling rejected Kalshi’s argument that the contracts are swaps topic completely to CFTC oversight.
The authorized wrangling escalated final week with New Jersey petitioning the US Supreme Courtroom to weigh in on whether or not states can regulate sports activities contracts provided on CFTC-regulated prediction markets.
In a publish asserting the transfer, New Jersey Legal professional Normal Jennifer Davenport mentioned corporations akin to Kalshi declare to supply authorized sports activities betting nationwide whereas refusing to adjust to state playing legal guidelines, calling on the Supreme Courtroom to resolve the jurisdictional dispute.
Supply: Jennifer Davenport