Robinhood announces partnership with Chainalysis prior to its crypto wallet launch
Chainalysis, the blockchain analytics firm, has announced it is partnering with Robinhood for providing data and tools for trading, in advance of the upcoming launch of its crypto wallet.
In the December 13 announcement, Chainalysis has said the integrated partnership with Robinhood Crypto would assist the trading app in meeting compliance requirements ahead of its upcoming crypto wallet. The wallet is expected to roll out for all the users in the early months of 2022.
According to Robinhood, the platform would adopt Chainalysis’ Know-Your-Transaction, the company’s monitoring compliance solution, as well as the Chainalysis Reactor, which is its investigations software.
The trading app also shared that its teams would be using Chainalysis’ certification programs for achieving compliance.
Robinhood’s Head of Crypto Partnerships, Ben Einstein, has said that Chainalysis has been working closely with regulators and law enforcement for developing industry best practices with the approach being aligned with Robinhood’s commitment to working with policymakers in an inclusive and collaborative manner.
According to Robinhood, over 1.6 million people are currently on the waitlist for a crypto wallet that is poised to support depositing and withdrawing Bitcoin, Ether, Dogecoin, in addition to various other tokens. The trading app has also been testing its digital wallet feature since it had been first announced in September.
Many government agencies and firms in the private sector have employed Chainalysis as a solution for tracking both legitimate and illicit crypto transactions.
When the US Department of the Treasury had announced that it would impose sanctions on the Czech Republic and Russia-based Suex OTC, it had cited an investigation from the analytics firm.
After it had gone public on the Nasdaq in July 2021, the share price of Robinhood (HOOD) has declined steadily from its all-time high of $70.39 on August 4 to $21.83 at the time of writing this piece, which is a drop of roughly 70 per cent.