On Monday, blockchain data analytics platform Chainalysis announced that it has joined an integrated partnership with wildly popular online brokerage app Robinhood (NASDAQ:HOOD) Crypto. Under the agreement, Robinhood will leverage Chainalysis’ data and analytics tools to meet compliance requirements and provide Robinhood customers with everything needed to trade cryptocurrency safely.
Robinhood engaged Chainalysis prior to the anticipated launch of the Robinhood Crypto wallet solution, which currently has a waitlist of more than 1.6 million prospective users. The digital wallet feature will give Robinhood customers the ability to deposit and withdraw a wide variety of cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and more. Currently users cannot move their cryptos off the Robinhood exchange.
As cryptocurrency adoption continues to accelerate globally, market leading fintech companies like Robinhood are experiencing massive growth in crypto trading and more demand for exposure to this asset class than ever before. However, growing consumer access to cryptocurrency requires the highest regulatory compliance standards. Chainalysis’ comprehensive data set and real-time monitoring and investigative solutions help compliance teams build trust, keep accounts safe, and expand their cryptocurrency offerings.
“We have a strong ‘Safety First’ policy which guides our decision making and our customer’s safety as our number one priority,” said Ben Einstein, Head of Partnerships, Robinhood Crypto.
“The executive team has spent significant resources and capital to embed that principle into every level of the organization. Chainalysis works closely with regulators and law enforcement to develop industry best practices and that approach is aligned with Robinhood’s commitment to working with policymakers in a collaborative manner.” Robinhood Crypto will adopt Chainalysis “know your customer” and Chainalysis Reactor, software solutions that leverage Chainalysis data to manage a vast set of compliance needs. Robinhood Crypto will also leverage Chainalysis certification programs to ensure their teams are trained and understand the requirements necessary to operate a compliant cryptocurrency business.
“Cryptocurrency’s open, transparent, and decentralized technology is designed to democratize finance,” said Jonathan Levin, Co-Founder and Chief Strategy Officer, Chainalysis.
“We are thrilled to work with Robinhood Crypto – a company laser focused on building financial products that work for everyone – to build trust in cryptocurrency and promote more financial freedom with less risk.”
On The Flipside
- Robinhood has come under fire this year for blocked trades and criticisms against its custody practices that haven’t allowed investors to take ownership of crypto assets from its platform.
- Let’s hope this Robinhood Crypto wallet upgrade changes that.
Why You Should Care?
Robinhood is the most popular investment app among Gen Z and Millennials. These upgrades will likely spur its further use and adoption as well as crypto with it.
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