Hub Security announced this week the use of its military-grade VaultHSM (Hardware Security Module) to secure INX’s crypto services as they launch their first IPO of 130 million INX Security Tokens (“INX Tokens” or “Tokens”).
Following INX’s first SEC approved token issuance, we wanted to share with you the processes leveraged to secure INX’s token distribution using Hub Security’s VaultHSM and handheld miniHSM devices.
What is a Hardware Security Module
A Hardware Security Module (HSM) is a dedicated cryptographic processor designed to protect highly critical and sensitive keys and assets. HSMs act as trust anchors that protect the cryptographic infrastructure of some of the most security-conscious organizations in the world.
Hub Security’s VaultHSM & MiniHSM
The evolution of digital security has made digital asset management more transparent, accessible, and streamlined than ever. But protecting digital assets comes with its own set of unique challenges, which is why having a proper HSM is crucial to preventing business risk.
Hub Security’s platform secures the entire process of token issuance and distribution to investors utilizing military-grade cybersecurity principles. Our VaultHSM and handheld miniHSM devices provide end-to-end security for key management processes, such as sensitive requests sent to smart contracts for approval on the blockchain.
Our combination of hardware and software cyber solutions includes an ultra-secure internal signing and authorization flow with a multicore vault, hardware firewall, access control, rules, policy engines, and an AI-learning system designed to anticipate unique cyberattacks.
“With internal architecture that is designed for FIPS140-2 Level 4 (pending), Hub’s HSMs are protected by the highest level of protection available on the market to date,” explains Ido Helshtock, HUB Security’s CPO.
HUB Security’s remote miniHSM provides users with operational cost savings and high-usage flexibility, a big reason why our partners at Tokensoft chose to work with us over other cryptographic solutions.
“The Tokensoft Transfer agent began distributing the first INX tokens last night. We’re excited to have been able to pair our high-throughput distribution infrastructure with hub security. Merging the best of both worlds, scalability and cyber security,” says Mason Borda, CEO of Tokensoft.
Tokensoft’s Secure Issuance for INX
The process for token issuance is fairly straightforward. In this case, an investor takes part in INX’s regulated IPO by sending a cryptocurrency, such as BTC, ETH, or USDT to the issuer. The issuance platform, Tokensoft, whitelists the investor’s receiving address –– where the INX token will be sent to late on.
From Jonathan Azeroual, Vice President of INX Limited, quoted this week on HUB Security’s announcement: ”This is naturally that we are looking at security solutions that provide the highest certification levels under a US standard that makes banks comfortable, Hub Security brings that promise”
This entire exchange process is highly-sensitive, with several vulnerable endpoints throughout ripe for potential exploitation, fraud and theft. Two of the biggest threats of these processes are (1) the ability of hackers to steal the private keys of the smart contract admin, and (2) the ability of hackers to hijack the credentials of the smart contract admin or management system in order to falsify transaction data and change the transaction’s final address location or amount of tokens transferred.
For these reasons, the token issuance and distribution process must be secured from end-to-end, in order to ensure the token safely arrives in the right hands. Hub Security’s VaultHSM and miniHSM are designed to protect the issuance and distribution process from start to finish and protects issuers and clients against these two major vulnerabilities involved in this process.