Foley Advises INX in Legal Segregation of Customer Funds

06 June 2023 News

Foley & Lardner LLP announced today it advised The INX Digital Company, Inc. (INX), an SEC-registered FINRA member broker-dealer offering registered security tokens and a trading platform for digital assets, in its proactive self-regulatory measure to fully segregate customer funds.

The action reinforces INX’s commitment to the highest standards of customer protection in the rapidly growing world of digital asset trading. While stringent regulations exist for the custody of customer assets in traditional markets, the digital asset landscape currently lacks standardized practices.

Recognizing the importance of customer protection, INX has taken proactive steps to address this gap by working with Foley lawyers specializing in digital assets, customer asset segregation rules, and U.S. bankruptcy law. Though INX has been segregating customer assets for years following well-established practices in the regulated trading industry, the company is making clear that it has put in place legal segregation of customer funds for the trading of digital assets, making them bankruptcy remote and further demonstrating INX's dedication to providing a secure and transparent environment for its valued clients.

Partners Geoffrey Goodman, Kathryn Trkla, and Patrick Daugherty were Foley’s team of advisors. Daugherty is a director of the Global Digital Asset and Cryptocurrency Association (GDCA), an aspiring self-regulatory organization that promotes segregated custody for customer assets as one of several “core principles” for centralized digital asset businesses. Renata Szkoda, who is the CFO of INX, chairs the GDCA.