The partnership also aims to enable direct deposits and withdrawals of cryptocurrency from the Robinhood platform – a significant feature that is not currently available.
the main points
- Chainalysis and Robinhood have announced an integrated partnership where the trading app will use Chainalysis data, analytics and software to advance Anti-Money Laundering/Anti-Terrorist Financing (AML/CFT) standards for crypto wallet users.
- The software and data upgrades should also enable direct crypto withdrawals and deposits from Robinhood’s suite of services – a functionality that is not available now.
- Robinhood currently has a waiting list of 1.6 million people who have signed up for its crypto wallet which is set to debut in 2022.
- Robinhood has had a bumpy ride since its initial public offering in July, priced at $85 per share in August and trading at less than $20 per share as of this writing. Its notoriety was hit last month when a hacker accessed the personal information of millions of accounts.
In a joint announcement today, blockchain data analytics platform Chainalysis and popular brokerage app Robinhood Crypto have partnered to advance AML/CFT compliance and crypto usability. Under the agreement, Robinhood will leverage Chainalysis data, analytics, and software tools to meet compliance requirements and provide Robinhood customers with secure and secure crypto transactions.
He partnered Robinhood with Chainalysis ahead of the expected launch of the Robinhood Crypto wallet solution scheduled for launch in 2022 and has a waiting list of over 1.6 million potential users. The digital wallet upgrade is supposed to give Robinhood customers the ability to deposit and withdraw a variety of cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin — at the moment Robinhood users cannot deposit or withdraw cryptocurrencies from the platform.
“We have a strong ‘safety first’ policy that guides decision making and the safety of our customers as our number one priority,” Ben Einstein, Head of Partnerships at Robinhood Crypto, said in a joint statement. “Chainalysis works closely with regulators and law enforcement to develop industry best practices and this approach is in line with Robinhood’s commitment to working with policymakers in a collaborative manner.”
The announcement noted that Robinhood Crypto will use Chainalysis “know your transaction” and “Reactor,” software solutions that leverage Chainalysis data to manage diverse compliance needs. Robinhood Crypto will also take advantage of Chainalysis certification programs to ensure the various Robinhood teams are appropriately trained and understand the requirements to run a compliant crypto business.
“Cryptocurrency’s open, transparent, and decentralized technology is designed to democratize finance,” Jonathan Levine, co-founder and chief strategy officer, Chainalysis said in the statement. “We are excited to be working with Robinhood Crypto – building trust in cryptocurrency and promoting greater financial freedom with less risk.”
Paving the way for a better tomorrow?
Despite Robinhood’s successful initial public offering in July, the trading app has had a rough patch this year. The company has been hit by wide volatility in stock prices and is trading at an all-time low today. It also faced heavy criticism from users against banned deals for GameStop and AMC earlier this year, as well as a hack last month that exposed personal information from millions of accounts.
We hope this crypto focus announcement is part of Robinhood’s solution moving forward and not another malicious problem to overcome.
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