Robinhood Partners with Crypto.com to Expand Prediction Markets
Robinhood, a leading online brokerage firm, has announced a significant partnership with Crypto.com, a prominent cryptocurrency exchange, to expand its prediction markets business. The partnership aims to create a stronger, more diverse, and resilient marketplace for event contracts, which have seen a surge in demand in recent times.
Under the agreement, Robinhood will begin routing a portion of its football prediction contracts to OG.com's CFTC-regulated exchange and clearinghouse. This move is expected to enhance the overall market experience for customers, providing them with more options and better liquidity. The first contracts are expected to go live today, ahead of the new professional football season.
Partnership Details and Valuations
As part of the deal, Robinhood will 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. This valuation also puts OG.com's standalone valuation at $5 billion.
The partnership is a significant development in the prediction markets space, which has seen rapid growth in recent times. Robinhood's prediction markets business has posted record activity, with customers trading 13.6 billion event contracts in the second quarter alone. The World Cup saw over 5 billion contracts change hands, while across all prediction markets, Robinhood customers have traded more than 45 billion contracts since the business launched about two years ago.
Benefits of the Partnership
JB Mackenzie, VP and GM of futures and prediction markets at Robinhood, highlighted the benefits of the partnership, stating, "Routing event contracts to multiple venues helps create a stronger, more diverse and resilient marketplace." This approach will provide customers with more options, better liquidity, and a more robust market experience.
The partnership also marks a significant milestone for OG.com, which will join Kalshi, ForecastEX, and Rothera as venues handling Robinhood's event contracts. Contracts will be routed among the exchanges depending on factors such as availability, ensuring that customers have access to the best possible market conditions.
Upgrades to Robinhood's Prediction Markets
As part of the partnership, Robinhood is also upgrading its football prediction markets, adding live data and a dedicated hub. This upgrade will provide customers with real-time information and a more immersive experience. The company is also preparing a dedicated hub for the 2026 U.S. midterm elections, further expanding its prediction markets offerings.
Recent Developments and Market Activity
Robinhood's prediction markets business has seen significant growth in recent times, with customers trading over 45 billion contracts since the business launched about two years ago. The company recorded a record $1.33 billion in 24-hour DEX volume earlier this month, driven largely by renewed retail speculation in meme coins and growing interest in tokenized assets.
The partnership with Crypto.com and OG.com is a significant development in the prediction markets space, and it will be interesting to see how it shapes the market in the coming months. As the prediction markets business continues to grow, it will be essential for companies like Robinhood to stay ahead of the curve and provide customers with the best possible experience.
What to Watch Next
The partnership between Robinhood and Crypto.com is a significant development in the prediction markets space, and it will be interesting to see how it shapes the market in the coming months. As the prediction markets business continues to grow, it will be essential for companies like Robinhood to stay ahead of the curve and provide customers with the best possible experience.
With the first contracts expected to go live today, ahead of the new professional football season, customers can expect a more robust and diverse marketplace. The partnership also marks a significant milestone for OG.com, which will join Kalshi, ForecastEX, and Rothera as venues handling Robinhood's event contracts.
As the market continues to evolve, it will be essential for companies like Robinhood to stay ahead of the curve and provide customers with the best possible experience. The partnership with Crypto.com and OG.com is a significant step in this direction, and it will be interesting to see how it shapes the market in the coming months.