Institutional insurance, EU legal compliance, Savings services with high-yield, and other innovations such as gold-backed PAXG token support — just a few interesting things the INLOCK team has come up with.
INLOCK has joined the Fireblocks network. Fireblocks provides easy-to-use and fast crypto asset management for financial service providers for whom maximum security is also important.
The selection of FireBlocks was preceded by nearly a year of preparation. Cold wallet-type, high-security solutions are now provided by many service providers, but due to the peer-to-peer operation of the INLOCK platform, their service was insufficient for us. In contrast, Fireblocks not only protects devices stored in the cold wallet, but also specifically ensures exchange, movements between partners and customers. The insurance is not just about its technological and safety insurance. Fireblocks also has a unique high-value institutional insurance plan, which was rated strong by A.M. Best, a long-established and independent insurance analyst.
With the new service, customer assets stored in INLOCK are secured not only against attacks on the cold wallet or technological failures; but also in cases where the problem or abuse moves between certain components (e.g. exchanges, partners) used by the platform. This guarantees that crypto-asset submitted by clients is secured by an independent partner from the moment of referral to the time it is transferred.
Real gold tokenized!
The popularity of gold-based investment solutions seems undiminished, especially in uncertain market situations. It was expected that this kind of niche market would be recognized by several institutional actors, especially because the companies based on blockchain solutions are specifically open to the innovation. The Paxos Trust Co. in New York was among the first that recognized the blockchain-based tokenized gold solution and created the PAXG token. This is the only gold-covered product issued within a regulated framework of the blockchain market, where customers have direct ownership of the underlying collateral.
The early popularity of tokenized gold has been greatly undermined by the fact that countless amounts of crypto scams have targeted this industry in recent years. Some of these were essentially just trying to guide unsuspecting investors by their names. Allegedly, other similar projects based on MLM principle are beguiling their investors with gold collateral stored at banks with suspicious backgrounds in Dubai or even in Switzerland. PAXOS put an end to this uncertain market situation, when it created a 100% gold-backed PAXG token in addition to its popular dollar-backed PAX token.
How does INLOCK come into play here? INLOCK has introduced PAXG into its yield-producing deposit (Stake) product. This enables customers to achieve up to an annual return of 2.25% on their PAXG-based gold investments in their INLOCK wallets. If you’ve ever tried to make a gold-based investment, you know that in general, most solutions are just about charging the purchased gold with all kinds of handling, transaction, or even storage fees, which is slowly consuming the investment. In contrast, the INLOCK+PAXG combination produces continuous yield so that the customer can convert it to physical gold at any time.
PAXG is now the fourth supported asset in INLOCK’s yield-producing escrow service. Currently supported crypto-assets and their annual realizable returns:
Specific offers are available on the website of INLOCK yield-producing deposit: go.inlock.io/stake
The Stake service (adapted to the low-fee model of INLOCK) is completely free of charge, there is no extra cost of concluding deposit contracts, as does the managed lending service. In addition to annual returns, significant partner bonuses are also paid out under the Pioneer Program, which can reach up to 25% of the return.
Statutory compliance
With both the ILK token and the INLOCK platform, we can report important news on legal and regulatory compliance.
Although the issuance and regulatory framework of the ILK token is still linked to Estonia, the legal status of the token has already been matched to the Monetary Authority of Singapore (MAS) regulation since last September. The latter is important, because the legal compliance of the token in Singapore is one of the most important ratings in the crypto world, without which any major exchange listing is out of the question.
Another important novelty, is that the new EU 5. AML Directive has been published in the EU and has entered into force since January this year. Continuously working with local authorities, the internal rules and procedures of INLOCK AML and KYC were completed, and have since been approved by EU FIU. To the best of our knowledge, INLOCK is the first system audited by an independent auditor in Hungary that can implement customer identification, measures against money laundering and financing of terrorism without the involvement of an external partner.
What is expected shortly?
The development of the INLOCK Mobil Application is nearing completion. The mobile app itself will first implement Managed Lending and basic INLOCK wallet-related features, but shortly after the release, the Stake function will also be available.
Speaking of Stake. The development of the recently introduced Instant Credit Offer function is currently at the end of the planning phase. As a result, it will be possible to take a loan for deposited cryptocurrencies (still in USDC stablecoin form). This will be one of the most important functions of the platform, which is otherwise a unique development; we have not encountered any similar solution in competing solutions. We look forward to providing customers with a whole new financial service experience.
As we have indicated before, in the second half of the year we will be slightly back on more spectacular developments, but not at all to rest. Over the past year, the platform has reached the size we were able to achieve within the given framework. INLOCK currently manages nearly 10$ million in value, and the combined value of the loan transactions served by the platform has already exceeded 100$ million. Moving from this point on our own is a deliberately difficult task. That is why (in line with the original roadmap) we are focusing on INLOCK White Label and other partner integration services from the second half of 2020.
