Robinhood announces the acquisition of a minority stake in Crypto.com and its spin-off company OG.com, and has signed a multi-year cooperation agreement with OG.com. The announcement states that OG.com will provide infrastructure and settlement services for Robinhood's Prediction Markets platform, with the first batch of features being rolled out in phases to eligible US users starting from September 8th.
OG.com is responsible for the settlement after matchmaking.
According to the disclosure, after users place orders on Robinhood, the related event contract transactions will be processed and settled through the exchange of OG.com. OG.com is a prediction market application launched by Crypto.com in February this year, and was later split into an independent, capitalized company.
The company stated that Robinhood will import a portion of the retail-end predicted market trading volume into the OG.com platform. OG.com The relevant exchanges are regulated by the US Commodity Futures Trading Commission (CFTC), and such contract events also fall under the jurisdiction of this regulatory body.
Equity investment is priced based on the recent financing valuation.
In addition to business cooperation, Robinhood will also hold minority stakes in Crypto.com and OG.com. The report mentions that the investment price for this portion of shares was referenced based on Citadel Securities's investment conditions in Crypto.com in July of this year. That round of financing was Crypto.com's first institutional funding, with a valuation of approximately $20 billion.
As an independently split company, its valuation is approximately $5 billion. The CEO Kris Marszalek stated that this collaboration will drive the expansion of OG.com's liquidity in the innovative derivatives market.
- Crypto.com Valued at approximately $20 billion
- OG.com Independent valuation is approximately $5 billion
- Cooperation will be launched in phases starting from September 8th.
Robinhood Continues to expand its list of predictive market suppliers
Robinhood has been continuously increasing its investment in forecasting market services in recent years. Previously, the platform integrated the contract products of Kalshi, and later shifted part of its trading volume to Rothera. The latter is an exchange that operates in collaboration with Robinhood and Susquehanna International Group and holds a CFTC license.
After introducing OG.com, the number of predictive market infrastructure providers for Robinhood has increased to three, reducing reliance on a single platform. Company executives stated that with the rising demand from users for event contracts, this collaboration has also led to Robinhood deepening its investment in this business further.
Robinhood In the second quarter, event contract revenue increased by more than 10 times year-on-year, reaching $156 million, and has become the company's fastest-growing business line. In contrast, its crypto transaction revenue declined by 38% during the same period. This means that for Robinhood, the forecast market is taking on more of the growth burden.
The next step leads to stock-linked perpetual contracts.
The report also mentioned that Crypto.com received conditional approval for a national trust bank license from the United States in February this year. The separation of OG.com into an independent, capitalized company is also seen as a step towards moving closer to regulated financial infrastructure.
Both parties have previewed the direction of their next phase of cooperation, which is to launch sustainable futures products linked to stocks after obtaining regulatory approval.
