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According to an announcement on May 3, the INX securities token platform has launched a wallet with matching features for institutions. The new wallet was created in collaboration with wallet infrastructure provider BitGo and uses Multi-Party Computing (MPC) technology.
Exciting announcement!
INX now collaborated 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 comply with the ERC-1404 token standard. The standard was created in 2018 to ensure compliance with Ethereum tokens. These tokens can only be transferred between users who have completed identity verification at a participating institution.
The new wallet allows institutions to meet financial industry cybersecurity and custody standards when holding INX security tokens. No person has access to the private key that controls this account. Instead, the key is broken into three or more “shards” that must be combined to sign transactions. This process is called multiparty computing (MPC).
According to the announcement, the wallet also contains features to make it easier to manage employee access privileges. Companies can assign different roles to different employees, such as “viewers, spenders, approvers, and administrators.” They can also segregate clients’ assets by splitting funds across multiple wallets and granting “approver” privileges to each individual client. This allows institutions to give their customers more control over their individual accounts, the report said.
Lisa Jowett, head of platform sales at BitGo, believes that these new features will help institutional investors more comfortably use Web3 technology:
Our wallets can seamlessly connect and interact with INX. One without sacrificing safety or reliability. This will open up new opportunities for investors and serve as a gateway to the institutional adoption of Web3.
INX reached a milestone on April 3rd when it issued its first equity token from the public company Greenbriar Capital (GEBRF). Its chief business officer, Douglas Borthwick, argued that eventually “all assets will move to the blockchain.”
The company is registered with the Securities and Exchange Commission as a broker-dealer in the United States. Some industry experts argue that the U.S. does not have sufficiently clear cryptocurrency regulations to allow most cryptocurrency exchanges to receive this designation.
