Robinhood will take initial equity stakes in Crypto.com and its prediction markets spin-off OG.com.
The stakes will be priced in line with Citadel Securities’ recent investment in Crypto.com Group, which valued the group at US$20 billion.
That included a standalone US$5 billion valuation for OG.com.
The companies did not disclose the size of Robinhood’s stakes or other financial terms.
The equity deal is part of a multi-year partnership that will see Robinhood route retail event contract volumes through OG.com’s regulated exchange and clearing infrastructure.
Robinhood offers the contracts through Robinhood Derivatives, a registered futures commission merchant regulated by the US Commodity Futures Trading Commission.
The event contracts cover economic indicators, sports, elections and cultural events.
The phased rollout of OG.com-backed contracts to eligible US customers was scheduled to begin on 8 September.
The agreement is expected to become OG.com’s largest business-to-business prediction markets partnership by transaction volume.
OG.com is being spun off from Crypto.com as an independent company focused on prediction markets.
“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.
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.”
said JB Mackenzie, VP and GM of Futures and Prediction Markets at Robinhood.
“This is the beginning of a strategic partnership between both companies.
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.”
said Kris Marszalek, Founder and CEO of Crypto.com and OG.com.
Featured image: Edited by Fintech News Singapore, based on image by DC Studio via Magnific
