The Insane Future of Security Tokens.. Simply Explained | INX Crypto Interview

The path Forest is um definitely Security tokens we basically see This as our Edge the financial Innovation and financial engineering That this technology and token unlock is Infinite I think there is a good chance That we tokenize everything by 21st yes Dude yes that's what I was going for yes Welcome back everybody to altacoin daily My name's Austin today I sit down with To the leadership at INX and discuss the Insane future that is security tokens in 2023 and Beyond and how this affects you And me as crypto investors now INX is a Partner of the channel we're speaking to Their chief blockchain officer John as Well as their Chief product officer Maya And in this conversation we discuss what Is INX how are they SEC compliant and Able to offer security tokens how big Will security tokens be in the next few Years as well as specific use cases that You and me can take advantage of and the Big question John presents this to us Should altcoin daily tokenize this Channel I encourage urge you to like the Video to support me as well as click the Link down below to learn more what is INX and how is it different than other Digital asset exchanges [Music] Maya well I would I would yeah I would Start by saying that um when we started Off in late 2017

Um it was very clear to us that the Regulated way is the only way for this Industry to really grow and be widely Embraced and reach its first and reach Its fullest potential Um you know we used to use this word a Lot it's important to be regulated but I Don't think it meant enough for for Customers for even just you know people That we were talking with Even in our uh In our personal circles but um uh we Already saw so many Industries uh you Know that kind of grew on the side and We saw how regulation came in and Um you know nothing stays unsupervised Forever so Um we uh we knew we wanted to be set up Correctly from the start we didn't want Anything kind of however bring over us Any historical data that was kept not in The right way or that we maybe accepted Customers not in the right way it was Really important for us to be Aligned from the get-go and be that Really that alley Ally sorry Um with Regulators Um that's why we went The route that we took for our own token Offering that's why from We Didn't Start Operating before we had all our proper Licenses and I think um you know back in 2017 2018 people maybe didn't understand Why we're going through all this effort Our hassle but now with the developments

Of the past few months I think we got we Got even more encouragement that that Was the right path for us And John what is the what is the road Map for 2023 you're established now I Know you have had some security Offerings you know a handful in 2022 is It just bigger and better or something Different Well the buff for us is um definitely Security tokens we basically see this as Our Edge we have the licenses to be able To operate you know in a regulated Fashion for you know anything related to Um security tokens and the question is You know what security token means at The end of the day right because we had A token offerings you know for the past Five six seven years I think everybody In the industry is aware of the held on That the regulator will basically uh Give to the industry especially now you Know the SEC and all that so I think There is a big potential for traditional Players to jump in this industry but What's really missing is uh basically The framework the Securities framework That exists now for the past 100 years Right and just to apply that framework To this new amazing technology that is Blockchain because with security token Everything can can be done you know more Efficiently peer-to-peer you have this Entirely new way of doing things that

Bring Finance into the digital digital World basically so the focus of the Company is to basically kick start this Market I think we are in a unique Position to be able to do that and the Way we see that is giving the ability to Companies to raise money right but Instead of raising money for Equity Instead of raising money for debts You're going to basically sell Pockets Right and this is something that exists For the past I would say three four Years already but the reason why this Market didn't really jump is because Each words we are missing the full Solution an INX as the full solution to Unlock this potential and the full Solution means the ability to conduct a Primary offering the ability to have the Token traded on an ATS in the US And the ability for a transfer agent to Actually manage the book and Records on Behalf of the insurers and those three Things inex is able to do so the ability To give this full package to each floor Will definitely derive our roadmap and Our business in 2023 Is this the INX way the raising money in A totally compliant way Definitely Um like I said there is a lot of work Educational work that needs to be done And the best idea we had to be able to You know spread

Our way yeah next way is we basically Wrote a book right wrote a book that uh Everybody actually is able to order on Our website that explains exactly How we see the future what is our vision And how we are able to execute on it And this is a question for either of you Going back to security tokens because to Me I can see that being a huge Trend in The next you know decade especially as Regulation comes down on this industry Post FDX what are the use cases for Security tokens that average people Businesses would care about You said average people and businesses So when you say businesses I'm thinking About it from the issuer's point of view And you know average people from the Investor's point of view Correct I want both Okay Um Well from the businesses point of view We have actually three different use Cases Um that I'll let John talk about a Little more maybe in a bit from the uh From the investors point of view Um what we talk about a lot and really The quite revolutionary thing that went Along with our own offering that was Conducted in um in 2020 and early 2020 Um it's just you know the leveling of The field you know allowing

Um retail investors to get in on an IPO A token IPO but nevertheless on an IPO Um that was just not an option for them Previously you know when Traditional IPOs take place it's very Unusual that retail investors can you Know come in and invest a thousand two Thousand dollars even more by the way Um so uh maybe it's a bit presumptuous But we like to talk a lot about the Democratic democratization uh that Security tokens bring Um but it's true Um we saw it in our own offering that Ended up with uh 7 200 uh retail token Holders Um that were spread internationally and Um that's something that just you know Doesn't happen in the traditional Markets so that's I think a huge Um value that comes along with security Tokens On the business side And uh and I think that there are a lot Of potential use cases very very Interesting ones like to the first one That makes a lot of sense especially in Those times is um a recovery token right So now we see all those companies in the Industry Filing chapter 11 right So chapter 11 basically means it's a Legal process that allow the company to Restructure and eventually potentially

Reopen at the end of the day right And when you think about it with a Security token you have the ability to Distribute to all your creditor a token That will be able to be traded on the Market that will will represent the Depths of the company to the Creditor Right and in you know in the example of A Celsius and the example Voyager that's Something that Basically they can do technically right And it it would basically mean that if The company reopened after the chapter 11 process you can actually potentially Allocate a percentage of the revenue of The new code to buying back the the Debts right the depth in the market to Eventually have all the Creditor recover 100 percent Of what they lost and this is a Revolutionary way to approach this type Of situation because if not for security Token basically the Creditor doesn't Have any choices they have to take a big Haircut right and they need they have to Basically go along with the decision of The clinical committee And uh just giving to older token that They are able to do a few things with it One if they don't believe in the Recovery of the company they can just Sell the token in the market that's a Way out that's liquidity for them second If they believe in the future of the

Company then they get they can just Order the token and believe that the Company in the future will buy back the Entirety of the supply and eventually The token will just send to one dollar Right usually it's Quantum can one Dollar of debt Um so the financial Innovation and Financial engineering that this Technology and token unlock is infinite And that's just one use case that Obviously makes a lot of sense in in Those times where you have all those Crypto companies just going bankrupt With not 100 creditors but thousands and Thousands of retail in the store that Certainly lost everything they had and Become creditors of this company so Um it's also a tool to actually make all Those creditors you know stay around Right stick to the company like continue To support it right when you have a Financial interest in something that Brings your uh level of um I would say Dedication to a whole different uh uh World the the the second thing and Second Use case that could be unlocked Is all the things related to the spam Token right We actually discussed internally To tokenize altcoin daily you know and That's something you should consider and I tell you why because right now right Now people

Uh influencers YouTube channels You guys are business Your person is actually a business You're worth money people are following You people uh you know you you manage to Actually attract all those attention and And those eyes into your context right So Um it would actually makes a lot of Sense for you to even consider a Security token offering where you would Actually sell Um tokens to your audience right in Exchange of the percentage of the Revenue that the channel is making it Would actually give you the money to Eventually expand to grow to create new Content and and and I think this is a Very interesting approach that some of The some companies are actually looking At right now and security tokens is Actually unlocking this potential and Finally you have all the traditional Financial instruments bonds equity That are trading in the financial market Right now but are extremely efficient Basically to be able to settle financial Instruments it would take basically a t Plus two right two days two business Days for the financial institutions to Actually get the Securities they bought Two days ago So when you think about it like uh the Blockchain and security token can make

All those processes instant instant Settlement full transparency Um and and I think that all the Traditional world of finance will Eventually move Um to it at some point My brother and I have been approached or Just had this conversation before Launching a fan token Um since we're in so deep with Cryptocurrency we're so passionate about It anyway And you know other major platforms have Sort of floated out their approached us They're I mean do you they're not secure You guys are fully compliant with the SEC they're not do you see those Companies failing or do you get severely Fined and having to switch the future For them Listen if you're trying to sell a token To someone right against money The people you're selling you're you're Selling to they expect a profit out of This tokens right you just cannot claim That this is just a a utility token and They are giving you money because they Like you is it's just it just doesn't Fly right so as long as there is an Investment contract between between the Company and the investors and there is You know clear intent for um getting the Stuff to actually make money which is Let's be honest one of the person of

This industry right The the point here is that you can uh we Have a legal framework to make it happen In the in a regulated way and on top of It if you're looking to actually Distribute part of your revenue or part Of your profit to your token holder this Is clearly your security so there is Just no overall way to unlock all this Potential That's just going behindx My question Sorry I was just going to say that's Also actually another use case of the Security token you know fan clubs if It's whether it's a sports club or you Know different examples so Right up our alley Um who's Inx's biggest competitor from a product Point of view Um Listen there really isn't another Platform out there that offers Everything that we offer in the same Place with the same account same login Credentials Um You know we have maybe competitors for Different aspects of what we offer of Course crypto trading side around the Security token uh listing side or Security token primary offering but There is no other platform that does all

Three side by side so I can't name even One I'm sorry Another big component of INX is the work With stable coins and cbdcs you guys had An agreement and I don't know if I'm Pronouncing this right sikpa or you Please correct me What is what exactly what does that Entail and what is the cbdc market look Like for you guys in 2023 Sorry John sick of a relationship you want to Take that sure So um so basically signifies a Family-owned company that exists for the Past 100 years right they are basically Um Working with more than 150 government or Countries around the world to be able to Produce basically the their their bills Their their notes right the cash Basically for all those countries right And Um obviously when you're doing that for The past 100 years and you see basically Everything going with digital and Central Bank talking about you know cbdc Then you know you feel basically that uh You you have to change something right Because you see where the world is going So reinvent yourself or stay behind Exactly So this company decided to partner with Us we we actually launched a JV together

That that will be basically in charge of Building Solutions for Central Bank to Be able to create Central Bank digital Currencies that would eventually replace Cash Eventually down the road so we already It's it's quite here already right the European Central Bank is looking at you Know 2025 2026 for you know first Pilots To actually go live the FED is also Looking into it on the wholesale side Um the Swiss so you have basically a lot Of the countries that are you know Already into that so you know we see This as the natural next evolution of Money or Fiats right you have the Cryptocurrencies which is one asset Class right this is Um considered commodity this is fully Decentralized Network this is one as the Class the second as class are securities So which is our investment right and That allow people to actually make Business between them right and this Also can be tokenized and be on the Blockchain and and the final I would say That the missing component is uh the Fiat money right the money that is Issued by countries and governments and Even that is actually moving into the Blockchain right so when you have this Expertise about how things work in the Security token World in cryptocurrencies It's actually not that hard to apply

Those things to uh to Fiat currencies Now obviously it's a highly regulated Industry right there is a big hurdle but We believe that with this relationship With streetpa we'll be able to to Penetrate this market and eventually Change the way you know people used and Interact with money What will the cryptocurrency market and I'm including security tokens and cbdc's And everything what will the crypto Market look like by 2030 do you think 2030 you said 2030. is it going to be All security tokens is the stock market Going to be totally tokenized What do you guys think I don't see the stock market being fully Tokenized by 2030 I have to say we Haven't coordinated our answers so let's See what John thinks I can't see that Happening in the next seven years just Because Um I see how How companies that are not in the Blockchain space that are not you know That their product isn't blockchain Based isn't crypto related I see how far They still are from this whole idea of Digitized digitizing and blockchain and Distributed ledgers and um you know we Talk a lot that when we're in our Company or you know other companies in The industry it's like you're speaking

Almost a different language when you're Sometimes when you're just hanging out With your friends you all of a sudden Realize oh not everyone knows a b c d Like it still has Pretty far away to go to be widely Embraced so I think to want to see the Entire stock market uh security tokens By 2030. it's been ambitious but that Just shows How big the potential is and what uh You know how many companies we have uh To get through uh until we get there Um but I think already now if we look at Our current offerings Um it's to me actually it's interesting To see that those companies aren't from The blockchain space Um which is maybe surprising to some Surprising to some at our company at Least Um and when I think of the of Cryptocurrencies that's also uh Something I have to say that even in our Company people are very divided on you Know our crypto currencies really still Here to stay or is it going to involve Evolve into something different and Bitcoin ethereum you know we'll stay This niche So even in our company I can say There are different views Sean I think there is a good chance that we

Tokenized everything by 2015 yes dude Yes that's what I was going for Um And and I tell you why Um when you think about the stock Markets right the the previous evolution Was basically from papers right people Who are basically changing piece of Papers on the on the worsted floor and Then what happened Computers came out and internet came out Right so In I would say a time span of maybe 15 20 years The change was elastic right it's like You can't even not recognize what it was And what it is So when you look at the evolution of Technology itself and how things are Even you know more modern and and and More sophisticated Well I think that those type of changes Will happen even faster right so uh Considering the fact that blockchain Technology exists for the past 12 years 14 years basically Um you you I can think how it's going to Accelerate very very quickly and how Many how much things can be done in the I would say the next 10 years I think The world will be a very different place 10 years from now in terms of Technology Blockchain adoption and tokenization Let's finish up I just want to make sure

We hit all that I hope plants right Between the two of us by the way let's Come back to this interview in sevenish Years and we're gonna we're gonna check Back in For 2023 though what what else can we Expect we touched on it a little what Else can we expect for INX in 2023 I would say we spent our first couple of Years Um Really investing a lot in our technology And our ability to scale in um building The platform uh correctly in a solid way Um and 2023 is going to be concentrated Uh around spreading the word spreading The word of the security tokens and Seeing more and more security tokens Come to life on our platform you know For security tokens to arrive the Secondary Market they have to be issued And we understood that and understood we Have to be a more a much more um Dominant player Um for the for the primary uh offering Stages and I would say that's our Biggest focus in 2023. John yes um it's it's definitely a big Um it's definitely Big Challenge you Know Um by the way we have a new company Going live on INX uh basically January 30. this company is called Town coin And what they are looking to do is

Tokenizing talents tokenizing people Right [Music] Um Turn Turn okay cool So this company is completely Revolutionary I've never seen anything Like that uh they are taking talent that I think you know very known figures Um in the in the United States and they Plan to you know tokenize them create Those fun tokens around all those uh you Know NBA players NFL players right okay This Market that let people invest in in In the in this specific sports player That Um you know they they love or or they Believe into and and I think this will Unlock a huge market so we really hope That um you know this company is going To be a catalyst Um in terms of you know all the things That can be done with with security Tokens uh but you know more broadly we Definitely see a huge pipeline we're Talking to a lot of companies very Different ones Um startups Phones ESG companies so you have all Those different startups and and Companies from Basically all the industries that are Looking into security tokens and and

That shows something that show that Um basically the way we do things can be Applied to any industry and and anything You want at the end of the day If the the key here is because it's Regulated you have a legal document that Is called a prospectus right a PPM Private placement memorandum Memorandum you are able to explain to Potentially investors what they get Right exactly what they get so you Actually give the level of transparency That investor deserves does it mean it's The good it's going to be a good Investment nobody knows but the key of Regulation is not judging if an Investment is going to be good or bad But it's actually to give the tools to Investors to be able to make I would say An educated judgment on the company Itself right So and that's what was missing during The the Ico the Ico date so you know we Are really focusing on bringing all Those companies on various industry into The platform coming to raise money and We want to hopefully by the end of 2023 Have you know 10 15 20 security tokens Being traded on our platform and another 20 30 40 raising money on INX and you Can imagine you know it will bring this World of security token and inex into a Whole different Board game wall right so we are really

Focusing on that we are increasing our Sales Um capabilities and you know we see a Lot of inbound interests Um from people that you know we don't Even know so we feel that it's it's Catching up And uh we feel the potential And in 2023 we are looking at basically Materialism materializing it basically Awesome and I want to remind the Audience if they want to check out more About INX or what you got going on in 2023 all links are down below check them Out before I let you guys go Douglas Borthwick he's explained this to me Before we've had him on the show Um but just remind me Like the INX token isn't listed on like The popular dexes now because it's a Different token standard or our will Security tokens need their own decks or They're not how come it's not listed on Exchanges the inax token for example Besides the INX Exchange Well the the answer is quite simple the Yeah they're lacking that sorry no I Mean the The INX token is a security right To be able to trade security You need to have a security license Right so even our National Exchange in The US or an ATS license out of the US Right and this gives you the ability and

The the the the FTP or or the regulator To be able to match trade between Investors in the context of Securities Okay coinbase doesn't have those Licenses Gemini doesn't have those Licenses remember we are a UF regulated Platform right so if you look at all the Over U.S cryptocurrency exchanges none Of them out of the licenses to be able To trade Equity tokens right and Hopefully we expect more more to to join Us right we want more Um in a platform to join us and trade Security tokens right but obviously it's Just easier to kick off cryptocurrency Exchange because it doesn't have any Clear regulations Um Regulatory hurdle Cool so so this is our Edge basically This is the hurdle that we created Versus uh all the overall platforms and Competitors Guys I learned so much again links for All your stuff are down below final Thoughts for the altcoin daily audience Starting with Maya I guess just going back to our last Point you know when we finished up with Our token offering it was April 2020 and We thought 2020 was going to be the year Of the security tokens and after what we Showed can be accomplished by a security Token raise

Um but that was slow going and um In terms of being embraced by the by Different companies uh in In the space and I I hope 2023 will be The year where everyone catches on to This uh to this great tool I think my uh stunned it up Very well Um the last thing I would say is Austin Let's tokenize Alcorn daily I'll leave it up to the Audience they're my true north I want to Hear from the audience down below would You like that Foreign