Robinhood (HOOD) to take Minority Stake in Crypto․com

Robinhood (HOOD), in an effort to continue delving deep into the crypto industry, announced it is taking a minority stake in crypto exchange Crypto.com. The brokerage will soon add yes-or-no contracts from Crypto.com prediction business and take stake in digital-currency exchange, according to a Tuesday press release.

The two companies have been discussing ways to expand Robinhood’s prediction-markets offerings, The Wall Street Journal reported in July, and reached a multiyear accord to include event contracts backed by Crypto.com’s OG.com business on the brokerage’s app. Terms of the agreements, including Robinhood’s investments, weren’t disclosed. Crypto.com and OG were valued at $15 billion and $5 billion, respectively, after Citadel Securities bought a stake in each in July.

“We think this is the beginning of a very strategic relationship, and the prediction-market event contracts are just the first product we’re going to be launching together,” Crypto.com Chief Executive Kris Marszalek said in an interview. The two companies have also discussed equity-linked perpetual futures should regulators approve the product, he said.

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