Robinhood has acquired equity stakes in Crypto.com and its spin-off platform OG.com. The investment follows valuations set by a previous funding round from Citadel Securities, though the specific size and value of the holdings remain undisclosed.
The partnership involves a multi-year agreement where Robinhood will route retail event contracts through the CFTC-regulated infrastructure of OG.com. This service rollout for eligible US customers began on Tuesday.
OG.com, which recently separated from Crypto.com at a valuation of $5 billion, will function as an independent entity. CEO Kris Marszalek stated that the platform intends to broaden its offerings to include futures and perpetual contracts.
Robinhood reported that its event contracts generated $156 million in revenue during the second quarter. This figure represents a tenfold increase year-over-year, exceeding the company's revenue from both equities and crypto transactions.
The expansion of prediction markets faces ongoing legal scrutiny. US states, including Nevada and New Jersey, are challenging the classification of these contracts, arguing they function as sports betting and should be subject to state gambling regulations.
