In Brief:
- Robinhood Crypto partnered with Chainalysis prior to its crypto wallet launch.
- Robinhood will utilize Chainalysis’ Know Your Transaction and Chainalysis Reactor services.
Blockchain platform Chainalysis announced its partnership with Robinhood Crypto where the latter will rely on Chainalysis data and tools in order to meet compliance standards before its crypto wallet launch.
According to the blog post, in addition to Chainalysis Reactor, the firm’s investigations software, Robinhood will use Chainalysis’ Know Your Transaction, the firm’s monitoring compliance service.
Risky and illegitimate transactions are flagged in real-time by Chainalysis KYT, while Chainalysis Reactor allows for deeper due diligence into potentially suspicious activities.
With these tools and simple API integration, Robinhood Crypto can gain access to the same blockchain data as government agencies do and easily integrate it into their systems to eliminate manual processes.
Chainalysis certification programs ensure that their personnel have the knowledge and skills required to run a legitimate bitcoin firm.
Before the anticipated launch of Robinhood crypto wallets, which now has a waitlist of over 1.6 million people, Robinhood Crypto resorted to Chainalysis.
Clients will be able to deposit and withdraw a variety of crypto coins, including bitcoin, Ethereum, Dogecoin, etc through the new wallets, which will also connect Robinhood Crypto users to the blockchain.
Jonathan Levin, Co-Founder, and Chief Strategy Officer, Chainalysis stated, “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.”
Ben Einstein, Head of Partnerships, Robinhood Crypto added, “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.”
Just a few days back Chainalysis announced that it is adding support for Lightning Network, a second layer protocol built on top of the bitcoin blockchain. Firms that handle Bitcoin payments through Lightning nodes will be able to use Chainalysis Know Your Transaction software as a result of the integration.
