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Securities token platform INX has introduced a wallet equipped with compliance features tailored for institutions, as stated in a May 3 announcement. This new wallet was developed in collaboration with wallet infrastructure provider BitGo and utilizes multi-party computation (MPC) technology.
Exciting announcement!
INX now partners with @BitGo to enable institutional #investors to fully and confidently engage in the #security #tokens market and the broader #digital #economy: https://t.co/AbpdS86lYk— INX (@INX_Group) May 3, 2023
INX securities tokens operate on the Ethereum network and adhere to the ERC-1404 token standard. This standard was established in 2018 to facilitate compliance-friendly Ethereum tokens. These tokens can only be transferred between users who have undergone identity verification with a participating institution.
The newly launched wallet enables institutions to adhere to cybersecurity and custody standards prevalent in the financial sector when managing INX securities tokens. No individual is granted access to the private key that governs a specific account. Instead, the key is divided into three or more “shards” that must be combined to authorize transactions, which is a component of the MPC technology.
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The announcement indicated that the wallet also includes features designed to simplify the management of employee access privileges. Organizations can assign various roles to different employees, such as “viewers, spenders, approvers, and administrators.” They can also separate clients’ assets by distributing funds across multiple wallets and granting “approver” privileges to each client. This structure allows institutions to provide their clients with enhanced control over their individual accounts, as noted in the announcement.
Lisa Jowett, head of platform sales at BitGo, expressed her belief that these new features will enhance the comfort level of institutional investors in utilizing Web3 technology:
“Our wallets can connect to and interact seamlessly with [the INX platform] without compromising on security or reliability. This will unlock new possibilities for investors and serve as a gateway for institutional adoption of Web3.”
INX achieved a significant milestone on April 3 when it launched its inaugural equity token from a public company, Greenbriar Capital. INX advisor Douglas Borthwick has contended that ultimately “all assets will migrate to the blockchain.”
The company is registered with the Securities and Exchange Commission as a broker-dealer in the United States. Some industry experts have suggested that the U.S. lacks sufficiently clear crypto regulations to enable most crypto exchanges to obtain this designation.
