Security token platform INX has launched a wallet with compliance features for institutions, it announced on May 3. The new wallet has been created in collaboration with wallet infrastructure provider BitGo and uses Multi-Party Calculation (MPC) technology.
Exciting announcement!
INX now collaborates with @BitGo to enable institutional #investors to fully and confidently participate in the #security #tokens market and the greater #digital #economy:https://t.co/AbpdS86lYk— INX (@INX_Group) May 3, 2023
INX security tokens exist on the Ethereum network and follow the ERC-1404 token standard. This standard was created in 2018 to facilitate regulatory compliance for Ethereum tokens. These tokens can only be transferred between users who have passed identity verification with a participating institution.
The new wallet allows institutions to comply with financial sector cybersecurity and custody regulations when holding INX security tokens. No one person has access to the private key that controls a given account. Instead, the key is divided into three or more “chunks” that must be combined to sign transactions, which is part of MPC technology.
According to the announcement, the wallet also contains features to make it easier to manage employee access privileges. Companies can assign different employees different roles, such as “viewers, spenders, approvers, and administrators.” They can also segregate client assets by dividing funds into multiple wallets and granting “approver” privileges to each individual client. This allows institutions to give their clients more control over their individual accounts, according to the announcement.
Lisa Jowett, Head of Platform Sales at BitGo, believes that these new features will help make institutional investors more comfortable using Web3 technology:
“Our wallets can seamlessly connect and interact with the INX platform without compromising security or reliability. This will open up new possibilities for investors and serve as a gateway for institutional adoption of Web3.”
INX reached a major milestone on April 3 when it launched its first public company stock token, Greenbriar Capital. Douglas Borthwick, an adviser to INX, has argued that over time “all assets will migrate to the blockchain.”
The company is registered with the Securities and Exchange Commission as a stockbroker in the United States. Some industry insiders have argued that the United States does not have clear enough cryptocurrency regulations to allow most exchanges to earn this designation.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.