Why Coinbase And INX Will Be Fundamental To The Birth Of Capital Markets 2.0

Visionary CEO’s that took the best that blockchain has to offer to upgrade the obsolete ways of trading and listing and migrate the investment community to the 21st century.

There is no more denying the validity of the digital assets space. The library of Congress lists over 130 countries that legislate to present a path for cryptocurrencies and security tokens to co-exist with traditional financial instruments. However, despite stellar growth of the crypto assets market to $782 billion in 2020, this market is still making its baby steps representing less than 1% of the global financial markets in comparison to traditional equity and currencies.

The blockchain technology appearance brought exciting capabilities for a better capital markets future including instant settlement, smart contracts (and by association – smart securities), fractional ownership, higher transparency with no need for middlemen (any middlemen for that matter), non-dilutive and non-debt capital raising and many other aspects that (unarguably) should have been upgraded long time ago.

Yes, there is a vast potential for this 1% to grow and even replace traditional capital markets, however, the main caveat to this vision is its unavoidable reliance on regulation. Blockchain enthusiasts and techno-anarchists tried the non-regulated way back in 2017 and the blowout nearly wiped the industry clean from existence with multiple fraud allegations, SEC global subpoenas and the crypto nuclear winter of 2018-2020.

Some companies saw it coming and made the right turn in time to prepare for the next wave. INX (www.inx.co), a Gibraltar based crypto exchange and security token listings has worked with E&Y and the SEC in tandem for three years since 2018 to build the world’s first fully regulated exchange, the NASDAQ 2.0 if you will. They were the first to get an SEC clearance for a full-fledged INX token IPO. Not a Reg-D, which is limited to accredited investors only and cannot be listed (e.g. Telegram that cloud not list their token and had to repay back $1.6 Billion their investors), but a full F-1 unlimited prospectus that enables all capital market players to participate; retail, institutional and accredited investors.

Shy Datika, INX’s founder and CEO has seen the regulatory strongarm coming ahead of the pack and built what may become one of the most influential players in the Capital Markets 2.0 for the next decade. Their SEC cleared prospectus is being probed and copied by many who wish to walk the same path and it is a good path. A regulated one that sets new standards for this new asset class.

Brian Armstrong, the legendary CEO of Coinbase (www.coinbase.com) was a late bloomer to the regulatory path but he took the SEC oath when filed for a $100 Billion American IPO with a pledge for an uncharacteristic blockchain markets transparency and disclosure of everything to the public. Their F-1 prospectus talks about their $90 billion of assets, 43 million users, 7,000 client companies and more. Coinbase is not INX. Coinbase is listing its equity shares and not a digital token like INX (token.inx.co) did, but still – regulated, transparent, reporting to the public – the way blockchain digital assets are supposed to be if we want it to take over the world.

With Armstrong and Datika as leaders of this trend, we may see a massive migration of companies and investors moving from legacy exchanges to digital assets exchanges over the next 5 years. There is a substantial room for growth and very few truly regulated players like INX and Coinbase. We foresee pivotal times ahead, with blockchain-based digital assets becoming the new asset class of the future.