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Can Robinhood's Crypto.com Deal Supercharge Prediction Markets' Growth?
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Key Takeaways
Robinhood began routing select football event contracts to OG.com's CFTC-regulated exchange on Sept. 8.
HOOD generated $156 million in Q2 event contract revenues, up more than tenfold year over year.
The Crypto.com deal adds another venue as football seasons and 2026 midterms could lift trading activity.
Robinhood Markets (HOOD - Free Report) is stepping up its push into prediction markets through a collaboration with Crypto.com and its standalone prediction-markets platform, OG.com. Beginning Sept. 8, HOOD started routing select football event contracts to OG.com’s CFTC-regulated exchange and clearinghouse. As part of the agreement, HOOD will receive minority equity stakes in Crypto.com and OG.com, priced in line with Citadel Securities’ recent investment that valued Crypto.com Group at $20 billion.
The deal comes at an opportune time, as prediction markets have emerged as one of Robinhood’s fastest-growing businesses. In the second quarter of 2026, customers traded 13.6 billion event contracts, while World Cup-related activity alone exceeded 5 billion contracts. Through the first eight months of 2026, more than 30 billion contracts were traded, lifting cumulative volumes since launch to more than 45 billion.
The rapid volume growth is increasingly translating into meaningful revenues. HOOD generated $156 million in event contract revenues in the second quarter, up more than tenfold year over year and surpassing Robinhood’s quarterly equities revenues of $129 million and crypto revenues of $100 million. This highlights the growing importance of prediction markets to the company’s revenue mix.
The Crypto.com collaboration is expected to further aid growth by adding another execution venue alongside Kalshi, ForecastEx and Rothera. A broader network of exchanges can enhance liquidity, improve pricing and expand contract availability, potentially supporting higher customer engagement. The timing is also favorable, with the professional and college football seasons underway and the 2026 U.S. midterm elections approaching, two events that could generate significant trading activity.
Robinhood’s expanding exchange network, broader product suite and large retail base should support further growth in prediction markets. However, rising competition and regulatory uncertainty could temper the pace of expansion. While the Crypto.com deal strengthens HOOD’s liquidity and product breadth, sustained momentum will hinge on customer engagement and the evolving regulatory backdrop.
HOOD’s Competitors in the Prediction Markets Business
Robinhood faces intensive competition from Interactive Brokers (IBKR - Free Report) and Coinbase Global (COIN - Free Report) in the prediction markets business.
Interactive Brokers has created a unified prediction-market interface spanning its ForecastEx platform, Kalshi and CME Group, with orders routed toward the best available net price. Interactive Brokers plans to add more exchanges and remains focused on economically relevant events such as elections, climate and macro indicators, while expanding weather offerings into hurricane-landfall and insurance-risk contracts.
Coinbase Global is scaling even faster. Its prediction-market contracts and revenues jumped 106% sequentially in the second quarter of 2026, pushing the business above $100 million in annualized revenues. Coinbase’s new crypto-binary experience drove roughly three times as many daily traders and four times the daily revenue versus May averages, while management plans to add combination trades.
Over the past three months, Robinhood’s shares have jumped 35.9% compared with the industry’s growth of 11.8%.
Image Source: Zacks Investment Research
HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 12.19X compared with the industry average of 3.38X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year increase of 2%. The trend is likely to continue next year, with earnings expected to jump 34.5%. In the past week, earnings estimates for 2026 and 2027 have been revised higher to $2.09 and $2.81 per share, respectively.
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Can Robinhood's Crypto.com Deal Supercharge Prediction Markets' Growth?
Key Takeaways
Robinhood Markets (HOOD - Free Report) is stepping up its push into prediction markets through a collaboration with Crypto.com and its standalone prediction-markets platform, OG.com. Beginning Sept. 8, HOOD started routing select football event contracts to OG.com’s CFTC-regulated exchange and clearinghouse. As part of the agreement, HOOD will receive minority equity stakes in Crypto.com and OG.com, priced in line with Citadel Securities’ recent investment that valued Crypto.com Group at $20 billion.
The deal comes at an opportune time, as prediction markets have emerged as one of Robinhood’s fastest-growing businesses. In the second quarter of 2026, customers traded 13.6 billion event contracts, while World Cup-related activity alone exceeded 5 billion contracts. Through the first eight months of 2026, more than 30 billion contracts were traded, lifting cumulative volumes since launch to more than 45 billion.
The rapid volume growth is increasingly translating into meaningful revenues. HOOD generated $156 million in event contract revenues in the second quarter, up more than tenfold year over year and surpassing Robinhood’s quarterly equities revenues of $129 million and crypto revenues of $100 million. This highlights the growing importance of prediction markets to the company’s revenue mix.
The Crypto.com collaboration is expected to further aid growth by adding another execution venue alongside Kalshi, ForecastEx and Rothera. A broader network of exchanges can enhance liquidity, improve pricing and expand contract availability, potentially supporting higher customer engagement. The timing is also favorable, with the professional and college football seasons underway and the 2026 U.S. midterm elections approaching, two events that could generate significant trading activity.
Robinhood’s expanding exchange network, broader product suite and large retail base should support further growth in prediction markets. However, rising competition and regulatory uncertainty could temper the pace of expansion. While the Crypto.com deal strengthens HOOD’s liquidity and product breadth, sustained momentum will hinge on customer engagement and the evolving regulatory backdrop.
HOOD’s Competitors in the Prediction Markets Business
Robinhood faces intensive competition from Interactive Brokers (IBKR - Free Report) and Coinbase Global (COIN - Free Report) in the prediction markets business.
Interactive Brokers has created a unified prediction-market interface spanning its ForecastEx platform, Kalshi and CME Group, with orders routed toward the best available net price. Interactive Brokers plans to add more exchanges and remains focused on economically relevant events such as elections, climate and macro indicators, while expanding weather offerings into hurricane-landfall and insurance-risk contracts.
Coinbase Global is scaling even faster. Its prediction-market contracts and revenues jumped 106% sequentially in the second quarter of 2026, pushing the business above $100 million in annualized revenues. Coinbase’s new crypto-binary experience drove roughly three times as many daily traders and four times the daily revenue versus May averages, while management plans to add combination trades.
HOOD’s Price Performance, Valuation & Estimate Analysis
Over the past three months, Robinhood’s shares have jumped 35.9% compared with the industry’s growth of 11.8%.
Image Source: Zacks Investment Research
HOOD shares are currently trading at a premium to the industry. The company has a 12-month trailing price-to-tangible book (P/TB) of 12.19X compared with the industry average of 3.38X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Robinhood’s 2026 earnings suggests a year-over-year increase of 2%. The trend is likely to continue next year, with earnings expected to jump 34.5%. In the past week, earnings estimates for 2026 and 2027 have been revised higher to $2.09 and $2.81 per share, respectively.
Image Source: Zacks Investment Research
HOOD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.