Robinhood to Enable its Users to Gift Crypto, Partners with Chainalysis to Flag “Risky & Illicit Transactions”
Robinhood Markets (HOOD) is working on another crypto-related feature that will let its users send cryptocurrency to others as a gift.
This new feature was revealed in the app’s code, discovered in the beta version of Robinhood’s iPhone app.
It will allow sending cryptocurrency via digital gift cards along with a message up to 180 characters in length. The user will also be able to retract their gift anytime before it is accepted.
Previously, the beta versions of the company’s apps have disclosed the upcoming features such as support for crypto-wallets.
The stock and crypto trading app has been focused on increasing its crypto offers, as digital assets make up a big chunk of its revenue. And while crypto trading revenue plummeted in Q3, CEO Vlad Tenev said he is optimistic about the company's prospects in the crypto space.
Recently, Tenev revealed that more than 1.6 million users had joined Robinhood’s digital wallet waitlist. This crypto wallet is expected to be available to its users by early next year.
This week, Robinhood Crypto also onboarded crypto tracing firm Chainalysis to meet its compliance requirements and help keep accounts safe.
Robinhood will use the software Chainalsysis KYT to flag “risky and illicit transactions in real time,” while Chainalysis Reactor will help with due diligence of potentially suspicious activity.
“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.