TL; DR Breakdown
- Robinhood will collaborate with Chainalysis for crypto wallet launch
- Chainalysis will provide softwares to check money laundering
- Robinhood suffered a massive hack last month
Over the last few months, brokerage platform Robinhood has been drumming up the idea of creating a wallet that users can store their assets on its platform. Although the idea is still in the works, the platform is making huge strides towards achieving its set goal. In a recent move to make the wallet launch hitch-free and combat crimes, it has enlisted the help of the analysis website, Chainalysis.
Chainalysis will provide anti money laundering softwares
Going by several reports, Robinhood is set to collaborate with Chainalysis as it intensifies moves to debut its crypto wallet. The company’s partnership with Chainalysis will allow them to use the Know Your Transaction software on the wallet application. The firm even went further to note that in its bid to ensure compliance by users, it will roll out another software from Chainalysis known as Reactor.
Notably, these softwares would first launch and undergo trial on the brokerage sector of Robinhood before they are officially added to the wallets that would be released very soon. The KYT software was developed to check for money laundering activities through the various transactions carried out on the platforms. The Reactor software will enable Robinhood to access various in-depth knowledge about an issue immediately after the KYT software flags it as suspicious.
Robinhood suffered a massive hack last month
Robinhood has also mentioned that there are presently in talks to finalize the certification of the teams from Chainalysis. Speaking on the collaboration, The platform’s head of partnerships, Ben Einstein, mentioned that they are still abiding by their safety first motto. This is more reason why they needed the partnership with Chainalysis, whose aim is similar to that of Robinhood.
This recent move is coming off a bad event that put the company in a difficult situation. During the early period of last month, the platform suffered a massive breach as hackers got access to more than 7 million private information of its users. Asides from that, Robinhood has also been performing poorly in the market, with its shares falling a massive 43% since July.
The stock sold for $43 when it was listed before hitting an all-time high of $70. Presently, the price of the stock is selling around $20. However, the biggest obstacle to the company’s progress was the GameStop issue that occurred earlier this year.