Regulation Should Be The Rule, Not The Exception

A Stock Day Podcast Interview with Itai Avneri

During a recent Stock Day Podcast, the host, Everett Jolly, interviewed our Deputy CEO & COO. The interview couldn’t be more timely considering the many new developments on the U.S. regulatory front with regards to crypto custody, fraud and the growing efforts to set checks and balances. 

During the podcast discussion, Avneri emphasized that a solid regulatory framework is necessary to attract more mainstream investors to the digital asset industry. 

Without it, he said, the wild west mentality will persist and larger institutional investors won’t fully participate in the digital finance ecosystem. With that said, however, he sees the landscape changing, especially after the fallout of behemoth crypto exchange, FTX, and the attention now turning to establishing needed guardrails. 

Avneri mentioned that the crypto crash and the fall of FTX highlighted the importance of secure and regulated digital finance platforms – something that INX put in place from the very beginning by becoming the first company to get SEC approval to raise capital for its own token, the INX Token, after a long, three-year journey. At this point, it seems that not only is INX not part of the problem, but it holds the solution. Operating with checks and balances, said Avneri, is in our DNA.

The Insumer In A Tokenized Economy

Jolly asked Avneri about the future of the tokenized industry to which he responded that the future is already happening…right now. He believes that the new type of investors, called “Insumers,” want to invest in companies and products with digital assets in a regulated way. 

Security tokens, in particular, are a means by which businesses raise capital from interested investors, and the records they carry are immutable and easy for anyone to view—a degree of transparency that makes even traditional equities seem unnecessarily opaque.

Through the use of blockchain technology, security tokens have enabled a new order of magnitude in investing possibilities, including directly interacting with their consumers in ways not previously achievable, while expanding their pool of potential investors. Additionally, this new three-dimensional, mutually beneficial insumer/company relationship can create a sense of community that builds lasting brand loyalty and engaged investors.

A Tokenized Future With New Financial Tools

The Blockchain, and all that comes with it, represents a seismic shift in markets that will drive down transaction costs and create a tidal wave of innovation in finance. As Avneri highlighted, these innovations will benefit issuers and investors in the US and globally. 

Avneri mentioned during the podcast that he sees more financial instruments being tokenized in the future, including, especially as the regulatory frameworks (pioneered by INX) evolve with the growth of digital assets – with security tokens leading the way.

Security tokens can be for public companies that are already listed on a traditional exchange, like Nasdaq, to tokenize part of their shares. Tokenization can also be used for issuing digital bonds by government and corporate entities. Additionally, the development, testing and deployment of Central Bank Digital Currency continues to grow. 

Digital Assets: A Wealth Of Opportunities 

The conversation between Everett Jolly and Itai Avneri was eye-opening to listeners who maybe aren’t as familiar with security tokens and digital assets, and reassuring to those who are but are still skeptical about the future where these assets exist in a safe and regulated environment. The key is that this future exists now thanks to the work of Itai and the team at INX. The company’s vision set the standard others are now using to work with regulators and deploy blockchain-based solutions that continue to move the digital economy forward in a positive way.