Crypto.com may add Robinhood to a prediction market network that already includes Underdog, Fanatics, DraftKings and FanDuel, extending a wholesale business built on an exchange acquired in a $216 million deal.
Robinhood is considering a fourth supplier for its yes-or-no bets, potentially giving Crypto.com access to the brokerage's customers while leaving Crypto.com's exchange in charge of how its contracts settle, the Wall Street Journal has learned.
- For context, Robinhood already carries contracts from Kalshi, ForecastEx, and Rothera. Crypto.com would be number four, but the talks may still collapse as no financial terms have been disclosed.
A $216 million shortcut
Crypto.com bought its way into the U.S. derivatives market in March 2022, paying $216 million for Nadex and a 39% stake in Small Exchange from British trading firm IG Group.
Nadex, now called Crypto.com | Derivatives North America, has been a CFTC-regulated exchange since 2004, when it operated as HedgeStreet.
- Robinhood says each exchange writes its contracts, selects the official data and makes the final settlement decision, which Robinhood can't override.
Robinhood told the WSJ that it "will continue to partner with multiple exchanges to ensure our customers have access to a diverse and resilient marketplace."