Key facts
- Robinhood is partnering with Crypto.com to integrate prediction markets.
- Robinhood will take minority stakes in Crypto.com and its prediction market business, OG.com.
- Crypto.com's CEO Kris Marszalek confirmed the partnership.
- Robinhood's stock (HOOD) saw a nearly 3% increase after the news.
- Robinhood's Ethereum layer-2 network is experiencing record revenue and high total value locked.
Brokerage platform Robinhood is expanding its prediction markets business through a partnership with crypto exchange Crypto.com. As part of the agreement, Robinhood will integrate Crypto.com's yes-or-no contracts into its trading platform and acquire minority stakes in both the exchange and its standalone prediction market, OG.com.
Crypto.com CEO Kris Marszalek confirmed the collaboration, calling it a "game changer" for OG.com and Crypto.com. This move aligns with Robinhood's recent successes in the crypto space, particularly with the launch of its Ethereum layer-2 network, which has generated record revenue and significant trading activity, including meme coins. The network's total value locked (TVL) has seen substantial growth, increasing by over 24% in the last week and 91% in the past month.
Following the announcement, Robinhood's stock (HOOD) climbed nearly 3% to trade around $125, contributing to a more than 29% rise over the last month. This upward trend is partly attributed to the success of its layer-2 network. Deutsche Bank recently raised its price target for HOOD to $136, anticipating further revenue growth from the network. Additionally, Robinhood recently secured its first underwriter role for the Oura IPO, which is expected to provide more influence over share allocation to its customers.