It looks like popular crypto trading firm Robinhood is diving towards complying with regulatory authorities. In order to do that, Robinhood has recently partnered with blockchain data platform Chainalysis.
The blockchain data analytics firm announced yesterday regarding “an integrated partnership with online brokerage app Robinhood Crypto.” Following that, the company explained:
“Robinhood will leverage Chainalysis data and tools to meet compliance requirements and provide Robinhood customers with the confidence they need to trade cryptocurrency safely.“
What this means is, Robinhood will incorporate Chainalysis KYT and Reactor. Chainalysis KYT “flags risky and illicit transactions in real-time”. On the other hand, Chainalysis Reactor “enables deeper due diligence into potential suspicious activity.”
Besides this, Chainalysis said that Robinhood will take advantage of its certification programs. This ensures that the teams have the required knowledge and skills for operating a compliant cryptocurrency business.
Moreover, the blockchain data firm also talked about Robinhood’s crypto wallet that has a massive waitlist:
“Robinhood Crypto turned to Chainalysis ahead of the anticipated launch of Robinhood crypto wallets which currently has a waitlist of more than 1.6M.“
With this new functionality, Robinhood will provide customers the ability to deposit and withdraw cryptocurrencies supported in the platform.
As of now, users can buy/sell seven cryptocurrencies on the platform. These include bitcoin, bitcoin cash, bitcoin, dogecoin, ethereum, and litecoin. Besides all this, Robinhood supports real-time data for bitcoin, monero, omisego, qtum, and zcash.
According to its third-quarter earnings call, DOGE accounted for 40% of the company’s cryptocurrency transaction-based revenue for the three months. Meanwhile, supporters of the memecoin SHIB have petitioned for Robinhood to add SHIB to its platform.