NewsNovo
The pitch is straightforward: Robinhood (NASDAQ: HOOD) will route a portion of its football prediction contracts to OG.com, the soon-to-be-independent derivatives platform affiliated with Crypto.com, ahead of the new professional football season.
What complicates it is the equity arrangement woven in.
Robinhood will receive stakes in both Crypto.com and OG.com, with values pegged to Citadel Securities' recent investment in Crypto.com Group, placing the parent at $20 billion and OG.com's standalone business at $5 billion.
The case for the routing deal rests on a simple volume argument. Robinhood customers traded 13.6 billion event contracts in the second quarter, with more than 5 billion changing hands during the World Cup alone.
Keep reading