Security token platform INX has launched a wallet with institutional compliance features, according to a May 3 announcement. The new wallet was created in partnership with wallet infrastructure provider BitGo and uses multi-party computation (MPC) technology. INX security tokens exist on the Ethereum network and follow the ERC-1404 token standard. The standard was created in 2018 to allow for compliance-friendly Ethereum tokens. These tokens can only be transferred between users who have been authenticated by participating institutions.
The new wallet allows institutions to comply with financial industry cybersecurity and custody standards when holding INX security tokens. No one has access to the private keys controlling a given account. Instead, the key is split into three or more "shards" that must be combined to sign a transaction as part of the MPC technique.
According to the announcement, the wallet also includes features to make employee access more manageable. Companies can assign different roles to different employees, such as "Viewer, Spender, Approver, and Admin." They can also segregate clients' assets by split ting funds into multiple wallets and granting “approver” privileges to each client. This allows institutions to give their clients greater control over their personal accounts, the announcement said.
Lisa Jowett, Head of Platform Sales at BitGo, said she believes these new features will help make Web3 technology more accessible to institutional investors: “Our wallet can connect to and interact seamlessly with [the INX platform] without compromising security or reliable ity. This will unlock 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 equity token from a public company, Greenbriar Capital. INX consultant Douglas Borthwicklie be ves that eventually “everything will migrate to the blockchain.”
The company is registered as a broker-dealer with the US Securities and Exchange Commission. Some industry experts believe that the US does not have sufficiently clear crypto regulations to allow most crypto exchanges to earn this designation.
