Robinhood takes another step towards launching its crypto wallet

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The partnership also aims to enable direct crypto deposits and withdrawals from the Robinhood platform – a key feature that is currently not available.

In a joint announcement today, blockchain data analytics platform Chainalysis and popular online brokerage app Robinhood Crypto have partnered to strengthen the app’s anti-money laundering compliance. money / terrorist financing (AML / CFT) and cryptocurrency usability. Under the agreement, Robinhood will leverage Chainalysis data, analytics and software tools to meet compliance requirements and provide Robinhood customers with safe and secure crypto transactions.

Robinhood engaged Chainalysis ahead of the planned launch of the Robinhood Crypto wallet solution which is slated to launch in 2022 and has a waitlist of over 1.6 million potential users. The digital wallet upgrades will reportedly give Robinhood customers the ability to deposit and withdraw a wide variety of cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin – at this time, Robinhood users cannot directly deposit or withdraw cryptos from the platform.

“We have a strong ‘Safety First’ policy that guides our decision making and the safety of our customers as our number one priority,” said Ben Einstein, Head of Partnerships, Robinhood Crypto in a joint statement. “Chainalysis works closely with regulators and law enforcement to develop industry best practices and this approach is aligned with Robinhood’s commitment to work with policy makers in a collaborative manner.”

The announcement noted that Robinhood Crypto will use the Chainalysis “know your transaction” and “Reactor” software solutions, which leverage Chainalysis data to manage various compliance needs. Robinhood Crypto will also take advantage of the Chainalysis certification programs to ensure that the various Robinhood teams are properly trained and understand the requirements necessary to operate a compliant cryptocurrency business.

“Open, transparent and decentralized cryptocurrency technology is designed to democratize finance,” said Jonathan Levin, co-founder and chief strategy officer of Chainalysis in the statement. “We are delighted to be working with Robinhood Crypto – to build confidence in cryptocurrency and promote more financial freedom with less risk.”

Preparing the ground for a better future?

Despite the success of Robinhood’s initial public offering in July, the trading app has struggled this year. The company has been hit by wide swings in stock prices and is now trading at an all-time low. It also faced harsh criticism from users of blocked GameStop and AMC transactions earlier this year, as well as a hack last month that exposed the personal information of millions of accounts.

Hopefully this crypto focus announcement can be part of Robinhood’s solution going forward and not another damaging issue to overcome.

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