The transaction app will take over the Know-Your-Transaction monitoring solution from Chainalysis and the Chainalysis Reactor investigation software.
Blockchain analytics company Chainalysis will partner with Robinhood to provide trading tools and data before the app launches its crypto wallet.
In a statement Monday, Chainalysis said the integration partnership with Robinhood Crypto will help the merchant app meet requirements ahead of the launch of the cryptocurrency wallet, which is expected to roll out to all users in early 2022. Robinhood said the platform will host Chainalysis’s “Know-Your-Transaction” compliance monitoring solution in addition to Chainalysis Reactor, the company’s research software. The trade appendix also states that their teams will use Chainalysis certification programs to achieve compliance.
“Chainalysis is working closely with regulators and law enforcement to develop best practices for the industry, and this approach reflects Robinhood’s commitment to partnering with policymakers,” said Ben Einstein, Head of Partnerships at Robinhood Crypto.
According to Robinhood, over 1.6 million people are on a waiting list for a wallet that supports deposits and withdrawals of Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and other tokens. The merchant app has been testing the digital wallet feature since its first announcement in September.
First alpha transition #WalletsAlpha https://t.co/nxOL23leGM
– VLAD (@vladtenev) November 22, 2021
Many government agencies and private sector companies use Chainalysis as a solution to track legal and illegal cryptocurrency transactions. When the US Treasury announced sanctions against the Czech and Russian OTC company Suex, it cited an analyst investigation.
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Since listing on the Nasdaq in July, Robinhood’s (HOOD) share price has steadily declined from its all-time high of $ 70.39 on August 4 to $ 21.83, or about 70%.