Blockchain
According to a May 3 announcement, securities token platform INX has launched a wallet with compliance features for institutions. The new wallet was created in partnership with wallet infrastructure provider BitGo and uses multi-party computation (MPC) technology.
Exciting announcement!
INX is now partnering with @BitGo to empower 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 securities tokens exist on the Ethereum network and follow the ERC-1404 token standard. The standard was created in 2018 to enable compliance-friendly Ethereum tokens. These tokens can only be transferred between users who have passed identity verification at a participating institution.
The new wallet allows institutions to comply with cybersecurity and custody standards in the financial industry when holding INX securities tokens. No person gets access to the private key that controls a particular account. Instead, the key is split into three or more “shards” that must be combined to sign transactions, a process called multi-party computation (MPC).
According to the announcement, the wallet will also include features to more easily manage employee access rights. Companies can assign different roles to different employees, such as “viewers, spenders, approvers, and administrators.” They can also segregate client assets by splitting funds into multiple portfolios and giving each individual client “approving” privileges. This will allow institutions to give their customers more control over their individual accounts, the announcement said.
Lisa Jowett, head of platform sales at BitGo, said she believes these new features will make institutional investors more comfortable using Web3 technology:
Our wallets can seamlessly connect and interact with INX. One without compromising on safety or reliability. This opens up new opportunities for investors and serves as a gateway for institutional adoption of Web3.
INX reached a major milestone on April 3 when it launched its first equity token from a publicly traded company, Greenbriar Capital (GEBRF). Its chief business officer, Douglas Borthwick, has argued that eventually “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 argued that the US does not have clear enough crypto regulations for most crypto exchanges to receive this designation.
