Crypto wallet and blockchain security firm, BitGo is supporting Gibraltar-based, INX Limited, which operates the first security token IPO cleared by the US regulators, in various capacities.
Announced today, BitGo provides multi-signature wallets alongside qualified custodial services and access to liquidity through its institutional-focused trading service, BitGo Prime.
INX LTD leverages BitGo’s hot wallets to receive bitcoin (BTC), ether (ETH), and USDC stablecoin and other cryptocurrencies that it accepts to sell its tokens. The offering is available in 14 US states and BitGo steps in to help convert the cryptocurrencies and allocate INX tokens to buyers’ wallets.
Engaging a regulated firm like BitGo would help INX attract investments from institutional players like banks, hedge funds and family offices. Additionally, it enables a single entry-point for their customers for the trading of cryptocurrencies, security tokens and their derivatives.
Once INX launches its fully operational exchanges, BitGo Trust will provide qualified cold storage custody.
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BitGo Prime is led by Nick Carmi, who previously held roles across the mainstream finance world, including at Deutsche Bank, Barclays and Lehman Brothers, among others. The prime broker connects investors with several exchanges through a single gateway and lets them trade directly from the cold storage services that BitGo has been building since 2013. Investors will also be insured by BitGo’s policy, ensuring an additional layer of protection.
INX Plans to Launch a Crypto Derivatives Platform
BitGo already allows its users to cover up to $100 million worth of their digital assets held in their accounts with the blockchain security firm. The company’s patent multi-signature wallet technology has attracted institutional players because it offers an enterprise-grade custody service for their assets as well as application programming interface access to its underlying security platform.
“INX is breaking new ground with its historic IPO. At BitGo, we developed a seamless integration to easily connect the INX trading platform with our industry-leading multi-signature wallet technology, as well as our trading, liquidity and same day settlement services,” states Nick Carmi, CEO of BitGo Prime.
The new collaboration comes at a time when INX Limited is trying to strengthen its position and regulated activities to win a share of the US crypto market. The Gibraltar-based firm has filed with the Securities and Exchange Commission (SEC) to raise nearly $130 million through an initial public offering (IPO).
In addition, INX Limited is considering plans to launch a crypto derivatives platform for trading futures, options, and swaps. However, this is subject to the SEC’s approval, and it also needs first to secure a broker-dealer license.