Robinhood Turns to Chainalysis to Boost Compliance Ahead of Crypto Wallet Launch
Popular trading platform Robinhood has partnered with blockchain data platform Chainalysis to meet compliance requirements. Robinhood is preparing to launch its wallet, which has a waitlist of more than 1.6 million users.
Robinhood Partners With Chainalysis for Compliance
Blockchain data analytics firm Chainalysis announced Monday “an integrated partnership with online brokerage app Robinhood Crypto.” The company explained:
Robinhood will leverage Chainalysis data and tools to meet compliance requirements and provide Robinhood customers with the confidence they need to trade cryptocurrency safely.
Robinhood Crypto will adopt Chainalysis KYT and Chainalysis Reactor. The former “flags risky and illicit transactions in real-time” while the latter “enables deeper due diligence into potential suspicious activity.”
Chainalysis added that Robinhood will also leverage its certification programs “to ensure their teams are well versed in the knowledge and skills required to operate a compliant cryptocurrency business.”
Robinhood’s Upcoming Wallet Launch
The blockchain data firm noted:
Robinhood Crypto turned to Chainalysis ahead of the anticipated launch of Robinhood crypto wallets which currently has a waitlist of more than 1.6M.
Robinhood Crypto’s wallets will provide customers the ability to deposit and withdraw cryptocurrencies supported by the platform.
Currently, users can buy and sell seven cryptocurrencies on Robinhood: bitcoin, bitcoin cash, bitcoin sv, dogecoin, ethereum, ethereum classic, and litecoin. Furthermore, Robinhood Crypto supports real-time market data for bitcoin gold, lisk, monero, neo, omisego, qtum, XRP, stellar, and zcash.
The meme crypto dogecoin (DOGE) accounted for 40% of the company’s cryptocurrency transaction-based revenue for the three months ended Sept. 30, the company said during its Q3 earnings call.
Christine Brown, Robinhood Crypto’s COO and VP of Product Operations, shared some details of the platform’s upcoming wallet in November. “We are actively in our alpha so we do have users we are onboarding who are actually getting access to this product today, right now,” she said at the time.
Meanwhile, supporters of the meme cryptocurrency shiba inu have petitioned for Robinhood to add SHIB to its platform. The petition on Change.org has garnered almost 550K signatures but Robinhood recently said it’s in no hurry to add another cryptocurrency.
What do you think about Robinhood partnering with Chainalysis and its upcoming wallet launch? Let us know in the comments section below.