Robinhood Markets Inc (NASDAQ:HOOD) is integrating tools from the blockchain data platform Chainalysis as it prepares to roll out its cryptocurrency wallets.
What Happened: The trading platform, popular with retail investors, will be using Chainalysis KYT and Chainalysis Reactor tools, according to a report by the Block.
KYT flags risky transactions in real-time, while Reactor visualizes chains of transactions for the purposes of due diligence.
“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, according to the Block.
See Also: How To Buy Shares On Robinhood (HOOD)
Why It Matters: Presently, users cannot deposit or withdraw cryptocurrencies from Robinhood’s application, but once the wallets are fully rolled out, that would change.
Robinhood supports buying, selling, and real-time market data for a number of coins such as Bitcoin (CRYPTO: BTC), Dogecoin (CRYPTO: DOGE) and Ethereum (CRYPTO: ETH).
Robinhood teased cryptocurrency wallets in September and announced its testing program at the same time.
This month, Robinhood Crypto Chief Operating Officer Christine Brown said on Twitter that the Alpha testing of Wallets came to an end.
Our #AlphaWallets program finished this week
— Christine (Hall) Brown (@christine_hall) December 8, 2021
I'd like to give a shout out to the amazing @Robinhoodapp customers who helped us fine tune the send, receive and design elements as we get ready for users to roll off the waitlist to beta in January.
The popularity of Robinhood’s wallets can be gauged from the burgeoning beta testing waitlist. Up to 1.6 million people were waiting to test the wallets at the end of November. The beta testing program is expected to commence in January, as per the Block.
Price Action: On Monday, Robinhood shares closed nearly 2.1% lower at $19.70 and rose 0.2% in the after-hours session. At press time, BTC traded 4.17% lower at $46,939.14 over 24 hours.
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