Robinhood Markets, Inc. would use Chainalysis software to manage data on cryptocurrency trading activities and compliance in its upcoming digital wallet.
Chainalysis notes that its blockchain transaction software would also help keep Robinhood cryptocurrency services safe.
The firm’s Chainalysis KYT would be used to identify risky and illegal transactions in real-time, while the Chainalysis Reactor would be valuable in conducting due diligence.
The American financial service company is anticipated to avail its cryptocurrency wallet to its customers at the beginning of next year. The Robinhood Wallet waitlist has registered over 1.6 million subscribers.
The new development underpins the increased focus by the regulators on matters of compliance standards among cryptocurrency providers. The scrutiny has heightened with the surging adoption of cryptocurrency assets.
Robinhood’s head of partnerships, Ben Einstein, welcomes the collaboration saying that Chainalysis has the best industry cryptocurrency services tools.