This SEC-approved platform allows companies to seek funding via digital tokens (NEO: INXD)

Summary

• INX is the frontrunner in the $40 Trillion market trading blockchain-based financial assets
• INX is the only regulated trading platform to get SEC clearance for a security token IPO — now making this novel funding path available to other companies
• This is a new asset class and a new way of raising capital beyond equity or debt
• INX Provides a critical solution for OTC companies who want to shed the constraints of short squeezes and low volume trading

INX Overview

INX is a digital asset securities trading platform aiming to lead the evolution into blockchain based trading and corporate finance. It is one of the first companies, worldwide, to get FINRA clearance for trading and clearing security tokens.

INX caters to institutional and independent traders. For institutional traders, INX is appealing with its licensed platform to trade cryptocurrencies and digital securities through INX securities. They offer a cash fund to safeguard platform capital and a dedicated account representative. Independent traders flock to INX for continuous, uninterrupted trading operations, regulatory oversight, and responsive trading support.

The company currently operates two regulated blockchain trading platforms, and with the company’s interdealer broker, ILS Brokers, plans to offer non-deliverable cryptocurrency forwards to Tier-1 banks in the near future.

In addition to enabling capital raising and trading of digital assets, current plans at INX include the roll out a mobile application and credit card services for crypto will allow users to exchange crypto for dollars almost instantaneously. Retail investors that are introduced as crypto investors are also exposed to the securities platform, expanding the securities trading volume on the platform and contributing to rapid organic growth at INX.

INX’s fintech approach was first displayed with the initial public token offering the INX token and raising $83 million USD. Continuing to comply with the SEC and FINRA, sets INX apart from other trading platforms and sets a tone for a redefined blockchain asset trading platform. The company currently operates two regulated blockchain trading platforms, and with the company’s interdealer broker, ILS Brokers, plans to offer non-deliverable cryptocurrency forwards to Tier-1 banks in the near future. The INX community has a unique and compound effect. As more companies begin to trade with INX, they will bring their own community of investors to the platform. The growth potential of the platform will be maximized as the community of investors across different assets grows organically.

INX Competitive Advantage

The blockchain-based financial asset trading industry represents a $40 Trillion market opportunity. Becoming the first company to gain FINRA clearance helped INX position itself as a frontrunner in that market. As regulators begin to increase scrutiny of the rapidly growing crypto market, company is positioned to be one of the top ten regulated trading platforms in the next five years.

Staying true to their regulation-focused business model, INX built a leadership team of experts in running trading platforms and complying with securities and derivatives regulations

Digital assets are expected to follow the same growth trends as were seen with the securities exchange. The inception of traditional securities exchanges is recorded as early as the 1600s when ship owners were issuing stock ownership to fund voyages. Regulation was nonexistent and market crashes continued to cost investors and resulted in bans that crippled even the newly formed London Stock Exchange. As the public corporate finance industry grew, regulation of securities exchanges began and computerized share trading became a standard in the financial world. Today, there are over 60 regulated exchanges trading trillions of dollars in shares every year.

Blockchain asset trading began in 2017 with IPO campaigns raising over $6 Billion by offering blockchain digital tokens. Since then, over 300 blockchain trading platforms have emerged, although none of them have been regulated or registered. Regulated trading platforms for digital assets have begun forming with limited capabilities. In the past, tokenized real estate and tokenized funds have not worked with Security Token Offerings (STO) because there has not been enough speculation attached to the investments to generate volume. Tokens are a new asset class with brand new characteristics, and it is likely that the SEC will act on token securities soon.

INX is the only company that can provide both securities/secondary trading and crypto, which draws different types of investors to multiple assets. Blockchain asset trading is becoming the new standard in the financial industry, and INX is paving the way to NASDAQ 2.0.

INX Strategic Acquisitions

INX has successfully formed many strategic partnerships with leading financial institutions. Recent acquisitions Openfinance Securities, LLC, a registered U.S. broker-dealer with an alternative trading system (ATS). The acquisition grants INX special approval to list and trade all security tokens using unique continuous technology. INX also acquired ILS Brokers, Ltd., an Israel-based interdealer broker. ILS brought over 50 tier-1 and tier-2 global bank relationships focusing on OTC trading of FX, interest rate, and other derivative products along with over $95 billion in annual transactional volume to INX.

INX continues to grow in market size and reputation by adding valuable global partnerships. INX purchased Tokensoft transfer agent, which will allow the company to offer complete services to Security Token Issuers and Listings. Additionally, the Japanese conglomerate, GMO-Z.com Trust Company, signed an agreement with INX to introduce GYEN and ZUSD stable coins to institutional and retail investors. INX continues to add new custodial services through partnerships with companies like BitGo and HexTrust.

INX Financial Performance

INX has successfully completed the world’s first SEC-registered security token IPO, raising $83 million from 7,200 retail and institutional investors. The company plans to continue to drive revenue through licenses, cryptocurrency trading, security token trading, and security token listing and raises. INX started generating revenue with the INX launch in 2021, at which time cryptocurrency trading fees were 100% of the INX revenue pool. Since the INX Token was listed on the INS Securities trading platform, it has reached a market cap of over $350 million. To date, INX charges 0.2% on all security token trades, $10k per year for security token listings, and 5–7% on capital raised through security tokens.

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NOTE: This blog post was done as part of The Future Markets Research Tank and the Decentralized Think Tank. Click here to real the full post.

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