Blockchain analytics company Chainalysis will provide data and software products to Robinhood, an online brokerage preparing to launch its crypto wallet, under a partnership agreement between the two companies.
Robinhood Crypto intends to implement the Chainalysis KYT and Reactor platforms as part of trading compliance efforts, according to a blog post published Monday.
KYT is designed to help users detect illicit and risky transactions in real time, while Reactor is intended to support due diligence on potential suspicious activities.
More than 1.6 million people are on a waitlist for Robinhood crypto wallets, which could enable users to withdraw and deposit Bitcoin, Ethereum and other cryptocurrencies and help establish a link between Robinhood Crypto clients and the blockchain.
“Cryptocurrency’s open, transparent, and decentralized technology is designed to democratize finance,” said Jonathan Levin, co-founder and chief strategy officer at Chainalysis.
Levin added that the company is excited to work with Robinhood Crypto to help foster more financial freedom and build trust in cryptocurrency.
“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,” said Ben Einstein, head of partnerships at Robinhood Crypto.
Robinhood Crypto will also use certification programs from Chainalysis to achieve compliance in the cryptocurrency market.
Chainalysis will sponsor the Potomac Officers Club’s Digital Currency and National Security Forum on Jan. 27. The virtual event will feature National Cyber Director Chris Inglis and Juan Zarate, global co-managing partner and chief strategy officer at K2 Integrity, as keynote speakers.
