Online discount brokerage Robinhood has acquired cross-exchange cryptocurrency trading platform Cove Markets. According to a blog post, co-founders Scott Knudsen and Victor Glava, as well as the Cove Markets team, will join the Robinhood crypto team. Robinhood says Cove's team will focus on "obtaining quality executions for customers in the crypto market." The price of the deal remains undisclosed.
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"Scott, Victor and the Cove Markets team will bolster our crypto trading platform and help us strengthen our leadership in the crypto industry," said Christine Brown, COO at Robinhood Crypto.
Founded in 2018, Cove Markets is a provider of a cryptocurrency trading intended for frictionless trading. In October 2019, the company raised $1.5 million from a pool of investors.
The acquisition comes after Robinhood Crypto selected Chainalysis as its data and compliance solutions provider. With Chainalysis, the Menlo Park-based fintech broker wants to meet compliance requirements for the upcoming launch of Robinhood cryptocurrency wallets.
Robinhood's crypto wallets will provide customers the ability to deposit and withdraw a wide variety of cryptocurrencies, including bitcoin (EXANTE: Bitcoin), ether (ETH), dogecoin (DOGE), and more. Particularly, Robinhood Crypto will adopt Chainalysis KYT and Chainalysis Reactor, software solutions to flag risky and "illicit transactions in real-time."
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