Robinhood is expanding its cooperation with Crypto.com from product integration to an equity level. The company disclosed that in addition to launching non-contractual services predicted by the market business provided by Crypto.com within the application, Robinhood will also acquire a minority stake in this cryptocurrency trading platform.
Cooperation starts with the predictive market.
According to the information released by both parties on Tuesday, this collaboration will begin with event contracts. Robinhood will introduce predictive market contracts supported by the services of Crypto.com within its own App, expanding its existing yes/no type trading products.
The Wall Street Journal previously reported that the two parties have been discussing plans to expand the Robinhood predictive market product line since July of this year. The latest agreement is a multi-year arrangement, but the specific terms, including the investment scale of Robinhood, have not yet been disclosed.
Valuation and terms not disclosed
In July this year, Citadel Securities purchased shares of Crypto.com and OG.com. After the transaction was completed, the valuation of Crypto.com was approximately $15 billion, and the valuation of OG.com was approximately $5 billion.
The information disclosed so far indicates that Robinhood's investment this time is a minority equity investment. The percentage of shares held has not been announced, nor has it been clarified whether it comes with a seat on the board of directors or any other governance arrangements.
- Crypto.com Valued at approximately $15 billion
- OG.com Valued at approximately $5 billion
- Robinhood The investment amount has not been disclosed yet.
Subsequent or extended to perpetual contracts
Crypto.com The Chief Executive Officer, Kris Marszalek, stated that the contract for predicting market events is just the first product launched by both parties, and the cooperation may continue to expand. According to him, both sides have also discussed sustainable futures products linked to stocks, but this is subject to regulatory approval for such business.
Robinhood, the person in charge of futures and forecasting market business, JB Mackenzie stated that this collaboration will help the platform provide better pricing and more contract varieties. For Robinhood, this is also an important phase for event contract business; the American football season is about to begin, followed by this year's autumn midterm election cycle.
Additional information:After the announcement of the news, the stock price of Robinhood did not change much on Tuesday, but it has risen by more than 28% over the past month.
