In the US, Robinhood to acquire stakes in Crypto.com and OG.com
In the United States, retail trading platform Robinhood Markets said it will route some football event contracts through OG.com, a federally regulated exchange. The company will also acquire stakes in OG.com and its former parent structure, Crypto.com, expanding its operations in the prediction market.
Investments and football contracts
According to Channel NewsAsia, citing Reuters, the value of the stakes will be determined in line with Citadel Securities' recent investment in Crypto.com. Crypto.com is valued at $20 billion as part of the deal, with $5 billion attributed to OG.com, which was recently spun off from Crypto.com's structure.
Starting September 8, Robinhood will route certain football contracts to OG.com. This will add another trading venue to the platform's existing partners ahead of the professional American football season. OG.com operates as an independent trading platform and manages a derivatives exchange and clearinghouse regulated by the U.S. Commodity Futures Trading Commission.
More current news is available on the UA.News Telegram channel Telegram.
Prediction market
Event contracts generated a record $156 million in revenue for Robinhood in the second quarter and have become an increasingly important growth area for the company. Robinhood is also expanding its offering of election-related contracts ahead of the U.S. midterm elections in November. The company is creating a separate section for state-level and federal races; some of these contracts may later be routed through Crypto.com and OG.com.
Prediction markets offer yes-or-no contracts on sports, political and economic events. Supporters of such products believe they use the collective assessments of market participants, while critics compare them to gambling. Regulators have increased their attention to insider trading risks.
