Robinhood Markets is set to enhance its prediction markets segment through a collaboration with Crypto.com and its newly independent derivatives platform, OG.com. This partnership introduces an additional channel for Robinhood's expanding event-contract operations.
As part of the agreement, Robinhood will direct a portion of its football prediction contracts to OG.com’s derivatives exchange and clearinghouse, which operates under the regulation of the U.S. Commodity Futures Trading Commission (CFTC). The initial contracts are anticipated to launch before the upcoming U.S. professional football season.
OG.com will join the ranks of Kalshi, ForecastEX, and Rothera as platforms managing Robinhood's event contracts. The routing of contracts among these exchanges will depend on various factors, including availability, according to Robinhood.
JB Mackenzie, Vice President and General Manager of futures and prediction markets at Robinhood, stated, “Routing event contracts to multiple venues helps create a stronger, more diverse and resilient marketplace.”
In this partnership, Robinhood will acquire equity stakes in both Crypto.com and OG.com. The valuation of these stakes will align with Citadel Securities' recent investment in Crypto.com Group, which placed the company's worth at $20 billion. Additionally, OG.com is valued at $5 billion following its transition to an independent trading platform.
This collaboration comes at a time when prediction markets are becoming a vital component of Robinhood's business model. In the second quarter alone, customers traded an impressive 13.6 billion event contracts, generating a record revenue of $156 million from these offerings.
During the FIFA World Cup, over 5 billion contracts were traded, and since the inception of the business around two years ago, customers have engaged in more than 45 billion prediction-market contracts. By August of this year, over 30 billion contracts had been traded.
Robinhood is also broadening its prediction-market offerings, introducing live data and a dedicated hub for football contracts. Furthermore, the company is preparing a separate hub for the 2026 U.S. midterm elections, which will cover both state and federal races, with some contracts potentially being routed to Crypto.com and OG.com.
Prediction markets provide “yes” or “no” contracts based on the outcomes of various events, including sports, politics, and economics. Proponents argue that these markets reflect the “wisdom of crowds,” while critics have drawn parallels to gambling. Regulatory scrutiny has intensified regarding these products, particularly concerning potential insider trading.
These markets gained significant attention during the 2024 U.S. presidential election and have seen increased demand surrounding major sporting events.
Robinhood's foray into prediction markets coincides with heightened activity in its digital asset sector. Recently, Robinhood Chain achieved a record $1.33 billion in 24-hour decentralized exchange volume, largely fueled by renewed retail interest in meme coins and an uptick in demand for tokenized assets.