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Robinhood routes football event contracts to Crypto.com’s exchange
The brokerage will also take equity stakes in Crypto.com and OG.com, with OG.com’s standalone valuation set at $5 billion as part of its spin-out.
Robinhood Markets said it will route a selection of college and pro football event contracts to the CFTC-regulated exchange and clearinghouse run by Crypto.com, starting Tuesday, with eligible U.S. customers.
The company also plans to hold equity stakes in both Crypto.com and OG.com, the prediction-market business that Crypto.com is spinning off as a standalone company. Robinhood already routes certain contracts to Rothera, a CFTC-licensed exchange it runs as a joint venture with Susquehanna International Group, while Kalshi and ForecastEX are described as arm's-length destinations.
Robinhood did not disclose the size of its stakes or what it is paying, but the equity pricing will be aligned with a $400 million Citadel Securities investment into Crypto.com from July at a $20 billion valuation, according to Robinhood. OG.com’s release places its standalone valuation at $5 billion, carved out of that $20 billion mark.
OG.com’s event markets run through North American Derivatives Exchange, Inc., or Nadex, which is designated as a contract market and derivatives clearing organization registered with the CFTC, and is the entity Crypto.com agreed to buy from IG Group in December 2021. The rollout is phased, beginning with football contracts split across OG.com, Kalshi and Rothera based on what each platform lists, while player stats and standings data are slated to arrive later this fall.