The Future of Securities as Digital Assets

Published on
October 9th, 2020
Duration
49 minutes

Smart Contract Risks and a Decentralized Alternative to Insurance


The Future of Securities as Digital Assets

The Interview - Crypto ·
Featuring Douglas Borthwick

Published on: October 9th, 2020 • Duration: 49 minutes

Douglas Borthwick, chief marketing officer and business development at INX, joins Ash Bennington, Real Vision senior editor, to discuss securities in the crypto space. Borthwick describes his own background in traditional finance and what led to the creation of INX. Borthwick covers a bit about the 2017 ICO mania and the risky approach many teams took in regards to regulation. He explains the rigorous approach he and the INX team took in being regulatory compliant to the highest degree. Borthwick briefly touches on decentralized exchanges and their risks. The discussion concludes with him explaining what he believes the future of securities looks like. Filmed on September 29, 2020.

Comments

Transcript

  • OS
    Oliver S.
    18 October 2020 @ 10:28
    Hi Ash! Nice interview, thanks! There is actually a company that does the same (and much more) and has already all the licences. They will tokenise everything not just securities, but movies, sport-teams etc. They will have the very first tokensale (STO) of a Hollywood movie just 2 weeks from now!! If you want to have an interview about project that will make history soon, you might have them?! Thanks
    • OS
      Oliver S.
      18 October 2020 @ 10:36
      I forgot the name :))) ... they are LCX.com if you might be interested
  • eK
    erik K.
    15 October 2020 @ 21:59
    See also HG exchange (https://hg.exchange) which recently started trading - tokonizes both digitial as non-digital assets that are currently traded privately, fully regulated by the monetary authorities of Singapore (it runs on Zilliqa)
  • AS
    Ash S.
    13 October 2020 @ 11:58
    Great interview, good to learn what is progressing behind the scenes! Securitized tokens have to be the future, it's a no-brainer even just as a basic improvement to the user experience of current trading platforms.
  • VK
    Ville K.
    9 October 2020 @ 10:40
    You can freeze your customer's assets? Can you please explain why the governments should have access into your wallet? In cryptocurrency space, people think that it's the same thing that the government could block your access to the internet, block your access to the information. It is like a civil right! No one can take that right away from you.
    • DM
      David M.
      9 October 2020 @ 15:27
      Agree...I'll stick with the DEXs...
    • CP
      Carl P.
      9 October 2020 @ 20:55
      WINX tokens?
    • HC
      Hao C.
      11 October 2020 @ 16:55
      This is where the true crypto and the legacy finance crowd in RV depart ways.
    • AS
      Ash S.
      13 October 2020 @ 11:53
      It's a different use case. INX is a preferable way to trade registered securities Vs trading traditional crypto on CeFi or DeFi. Space for both to exist.
  • SV
    Santiago V. | Contributor
    12 October 2020 @ 22:29
    Sorry, one more questions, feel free not to answer. When purchase / integration with TDAmeritrade?
  • SV
    Santiago V. | Contributor
    12 October 2020 @ 22:25
    How does INX compare against platforms like Securitize that focuses on Reg. D / C, etc. ? Is the primary distinction the optionality to retail (Accredited Investor status not required)? With banks now allowed to custody digital assets and the VASP rule in play, does INX consider partnering or M&A with a traditional banking institution? If securities are digitized on the same platform as crypto currencies & futures will you allow infinite denomination? In other words, will you allow trading of securities vs. crypto vs. futures vs. stablecoins? Uphold is currently allowing for cross-asset class denominations and interoperability is something assuming that the KYC/AML is met would be offered to traders and arbitrage via API? What about future assets like Real Estate, Art, etc., when? What is your position regarding building on a PoW blockchain like Ethereum with ERC standards, network fees, etc.? Have you explored other platforms like BFT Flare network that is fee-less and turing complete with the EVM? Lot's of questions, thank you in advance! Very exciting!
  • HJ
    Hendrik J.
    12 October 2020 @ 03:50
    Help me understand this. If you send the securities to your grandma as he suggests as a use case, and she loses her private keys what happens to those securities?
    • DB
      Douglas B.
      12 October 2020 @ 16:04
      Grandma can only receive the securities into her Etherium Wallet if that wallet has been whitelisted. If she then loses her keys, we will then reissue her tokens to her.
  • SY
    Shiva Y.
    11 October 2020 @ 07:20
    I'm very excited about tokenization & digital securities. Ever since Marc Cohodes in an RV interview spread the word about tZERO, I've been following it. It seems tZERO & INX are competing for the market-cap in digital assets space. tZERO with FINRA approval for a brokerage deal might be slightly ahead of the pack. Also Cohodes is super bullish on it. This was timely & informative. Borthwick mentions tZERO a couple of times. Very interesting to see who wins! Anybody else is interested in tZERO or INX?
    • DL
      David L.
      12 October 2020 @ 05:07
      Yes very much after the Marc Cohodes Interview. Not sure how INX differs Tzero.....
  • HC
    Hao C.
    11 October 2020 @ 16:59
    The virtual background really exemplifies his ethos for transparency.
  • MR
    Michael R.
    10 October 2020 @ 22:30
    Brilliant interview! Digitization of Securities and financials in general solves so many problems and reduces costs dramatically. Douglas has a brilliant, carefully executed solution to a historic problem. Thank you!
  • WE
    William E.
    10 October 2020 @ 22:27
    Please look into Kinesis Money & do an interview with then.
  • IM
    Indranath M.
    10 October 2020 @ 20:10
    Appears like a fixed income instrument (perpetuity) with embedded option. Holders may not make any money and this is highly illiquid. Thoughts?
  • PU
    Peter U.
    10 October 2020 @ 17:31
    outstanding content!
  • MK
    Matt K.
    9 October 2020 @ 21:28
    10 minutes in and this kind of sounds like a shitcoin commercial and I think Ash agrees. Let’s see how this plays out.
  • CM
    Chris M.
    9 October 2020 @ 20:30
    one great takeaway - tokenization of cash flow v equity. other than that, snoozefest.
  • AL
    Aaron L.
    9 October 2020 @ 08:09
    These guys are clearly playing the long game. Being on the right side of KYC/AML is clearly the future if you want to scale and have a sustainable business with no regulators going after you. Wild West will only go for so long and the serious money will now put their money with the cowboys.
    • AL
      Aaron L.
      9 October 2020 @ 08:10
      *Serious money will never put their money with the cowboys