Robinhood picks Chainalisys due to its close relationship with regulators and law enforcement
Earlier today, the blockchain data platform Chainalsysis announced it is partnering with a commission-free online trading platform Robinhood Crypto. Chainalsys will provide its set of analytics tools to help Robinhood meet regulatory compliance standards and provide industry-leading security levels ahead of the trading app’s cryptocurrency wallet launch in early 2022.
Robinhood has emerged as one of the leading exchanges in the industry due to its commission-free business model and seamless user experience. The company’s first foray into the cryptocurrency arena came in February 2019, when it began offering Bitcoin and Ethereum trading to users from select US jurisdictions.
Over the years, the demand for a native digital wallet solution increased drastically – the waitlist for the cryptocurrency wallet has grown to over 1.6 million entries. During an interview at a Crypto Goes Mainstream event in November, Christine Brown, Robinhood’s COO, stated that the product was in the alpha stages of development and that the company is making sure things are done precisely and with a security-first mindset.
The integration with Chainalysis goes hand in hand with Robinhood’s widely publicized ‘Safety First’ policy. According to a Monday’s blog post, Robinhood is looking to leverage Chainalysis certification programs and to adopt two of its flagship software solutions, which will help increase the overall security level of the Robinhood Crypto platform and tick the required compliance boxes.
Chainalysis KYT is a blockchain service designed to flag risky or otherwise malicious-looking transactions in real-time. The second software solution, dubbed Chainalysis Reactor, provides an in-depth transaction scanning capability, which adds an additional layer of oversight over potentially malicious activity.
Although the exact launch date of the Robinhood crypto wallet is not yet known, the company is reportedly targeting a rollout in early 2022.
