INX exchange taps Israeli crypto startup GK8 for crypto custody

INX, a cryptocurrency firm holding the first-ever token initial public offering, or IPO, approved by the Securities and Exchange Commission, or SEC, has chosen a digital asset custody provider.

According to a Sept. 16 announcement, INX has enlisted Israeli crypto startup GK8 for digital asset custody on its upcoming crypto exchange.

INX tweeted that the platform will use GK8’s end-to-end platform for managing and safeguarding digital assets. The platform includes GK8’s patented “air-gapped vault that can create, sign, and send blockchain transactions while staying 100% offline,” INX noted.

Based in Gibraltar, INX is planning to raise $117 million from its ongoing security token IPO targeting both retail and institutional investors.

After raising $7.5 million as of Sept. 10, INX’s began accepting cryptocurrencies like Bitcoin (BTC), Ether (ETH), and USD Coin (USDC) on Sept. 14. With the raised funds, INX intends to set up a multiservice digital asset platform as well as a cash reserve fund.

GK8 was founded in 2018 by Lior Lamesh and Shahar Shamai, cybersecurity experts who previously worked together in a classified Israeli cyber unit. The startup is said to be managing over $1 billion in digital assets for global banks, exchanges, and custodians. eToro, an Israeli social investment giant, became one of the company’s first customers in 2019, Lamesh told Cointelegraph.

The Israeli crypto custody provider is known for its highly provocative stance on the crypto wallets industry. GK8 claims to be able to store and transact crypto without any connection to the internet. In July 2020, GK8 posted an article that says that “no cold wallet is really cold if it requires internet connection to run a blockchain transaction.”