Robinhood Markets has entered a multi-year partnership with Crypto.com to integrate yes-or-no event contracts into its trading platform. The brokerage also acquired minority stakes in Crypto.com and its spin-off prediction-market unit, OG.com, as it seeks to capitalize on the surging demand for event-based derivatives ahead of the midterm elections.
Bullish
🤖 60%
Robinhood is aggressively expanding its event-based contract offerings through a new multi-year partnership with Crypto.com and its spin-off, OG.com. This strategic move builds on the company's existing momentum, where event contract revenue grew over 10x year-over-year to $156 million in the second quarter, positioning the firm to capture increased trading volume during the football season and midterm elections.
Catalysts
- ▲ Integration of Crypto.com's OG.com event contracts into the Robinhood app
- ▲ Potential future launch of equity-linked perpetual futures pending regulatory approval
Risk Factors
- ▼ Dependence on regulatory approval for new product launches like perpetual futures
- ▼ Intensifying competition from established sports betting operators and new prediction market entrants
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What is the nature of the deal between Robinhood and Crypto.com?
Robinhood will carry Crypto.com's OG.com event contracts on its app and has acquired minority stakes in both Crypto.com and OG.com.
How significant is the event contract business for Robinhood?
It is a rapidly growing segment, with revenue climbing over 10x year-over-year to $156 million in the second quarter.