Federal Reserve (FED) · Decrypt
Robinhood is buying its way into the machinery behind its own prediction markets business
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
◎ Multiple-sources
Prediction markets let people trade contracts on whether something will happen—a Federal Reserve rate cut, an election result, who wins Sunday's game—instead of betting through a traditional sportsbook.
Key facts
- Robinhood's event contract revenue surged more than 10-fold year-over-year to $156 million in the second quarter, making prediction markets the company's fastest-growing business line while crypto
- OG.com's standalone spin-off values it at $5 billion
- Robinhood built its prediction markets hub on top of Kalshi's contracts, then started shifting volume to Rothera, its own CFTC-licensed exchange run as a joint venture with trading firm Susquehanna
- Robinhood will route that retail volume through OG.com's exchange, which is regulated by the Commodity Futures Trading Commission, or CFTC—the federal agency that oversees this category of contracts
Summary
Robinhood and Crypto.com’s OG.com, announced a multi-year deal Tuesday making OG.com an infrastructure and clearing provider for Robinhood's Prediction Markets platform. Robinhood is taking minority equity stakes in both Crypto.com and OG.com. HOOD shares climbed roughly 3.4% in premarket trading to around $126, and Crypto.com's CRO token jumped toward a weekly high near $0.063 on the news. Robinhood is buying its way into the machinery behind its own prediction markets business.