 Hey guys, how you doing? This is your boy Rich from RichTVLive and you too can join the club at richpakesdaily.com where you can learn how to win and trade. Hi, how's everybody doing today? I'm your host Rich and we have a RichTVLive with our very special guest, the Chief Business Officer of INX, Douglas Borthwick. How you doing today, Douglas? I'm great, Rich. Thank you very much for having me. It's great to be here. Very excited to have you on the show. Thank you for joining us. My first question is INX is the world's first and only SEC registered security to IPO on the blockchain. Can you tell us more about the company? Certainly, INX came from an idea that our CEO, Shai Datika, had in 2017. He was looking at ICOs and he said, look, these ICOs are completely illegal. You can't raise money from the general public without going through the SEC. And he went to the SEC and he said, listen, I want to do something similar, but I want to do it with a fully registered security. And he said, well, you're going to have to build a prospectus for that. And he came back with MWE, a big law firm in New York and Ernst & Young. And over 950 days, we worked with the SEC with all the risk factors that are associated with cryptocurrencies and the blockchain and had never been done before for a registered security for a prospectus. Normally, for a prospectus, what you do is you cut and paste, like if you're a high tech company, you cut and paste the risk factors from the last guy and on you go. And it wasn't the case this time. We ended up completing it, getting the SEC to sign off on it. And on the back of that, we then opened up a website and raised around $85 million, just shy of that, from 7,250 investors in 74 countries. Now, with that capital, we kind of set it on our vision. Our vision was to have cryptocurrency trading, security token trading, which are digital securities and working with anywhere from retail all the way to institutional. Now, since then, we've built a work chest of just shy of $90 million. We also have, we bought a broker dealer and ATS and also a transfer agent. Right now, that's INX Securities. INX Securities is currently has the largest market capital of security tokens in the United States. And I believe that trades the most volume. And then on top of that, we also have the cryptocurrency trading business. Our cryptocurrency trading business is open right now in 31 U.S. states where we have money transmitter licenses. But we also have worked with other countries as well and have folks from other countries trading on our platform. And on top of that, we also bought an inter-dealer broker called ILS Brokers that currently is big in Israel, but it's NFA registered. And so we're opening up in Europe and the United States to offer derivative products like non-deliverable forwards in Bitcoin and Ethereum. Now, first of all, we're not just retail, we're about institutions as well. ILS Brokers deals with something like 50 tier one tier two banks. And so we get a seat at the table now talking to the larger banks about what they want in terms of cryptocurrency because they've got a lot of high net worth individuals that want exposure to Bitcoin, but the banks don't want to take delivery of Bitcoin per se. And so they want to do derivative instruments that have sort of the flavor of it and they have the movement of it, certainly the price appreciation. And so you have to do that through what's called a non-deliverable forward or derivative instrument. And that's something I was very heavily involved in in my prior career when I was Morgan Stanley for 10 years. Why is now the perfect time for INX to enter the public markets? Well, I think it's always a great time to enter the public markets because then you can bring clarity in something that normally is very opaque. I think there's a lot of folks in our business, in the cryptocurrency business or in the digital securities business that are private companies. And I think there's a lot of folks that are investors out there that want to invest in what we see as the future. I think one of the most astounding things is that I'd say about a year ago, the ex-SEC had Clayton to speech in Philadelphia. He said in the next three to five years, you could see all assets moving on the blockchain. So that's all of the equities that you know, that's about $115 trillion of equities, about $120 trillion of fixed income. And that's a lot more than what you know right now, which is around $2 trillion worth of cryptocurrencies and the like. So a lot of movement we expect or what we call the great migration is going to happen. And that's what we're really building a platform for is to be part of that process. People always like movement into new technologies, and they always like getting into, I guess, the guys that sell the shovels and the spades. And that's the kind of business that we are in where we allow and enable people to be able to trade in digital assets, whether it's cryptocurrency or digital securities. But we also are working on helping companies that are currently listed on other types of platforms, let's say the OTC, for example, come off of that and then list on an ATS. Now, why would you want to list on our ATS? Well, you'd want to list because we're open about 5.4 times more. And that means that we're open 24 hours a day, seven days a week, 365 days a year. And the way that equities are currently set up is to be open from 9.30 in the morning till 4 at night. Now, that might be great if you're in the United States, but it's not very good if you're somewhere else and you want to trade a U.S. registered security. And so we're working on that with a lot of lawyers to figure out the ways to do it. Now, recently, one client came to us, EV Biologics, they put out a press release that said they want to de-list from the OTC, they want to drop their ticker, and they want to list on INX. And the reason being, well, first of all, the 24 hours a day, seven days a week. But also the security tokens right now, there's a lot of guys that have naked shorts against a lot of issuers on the OTC. I think EV Biologics is on like an 80% naked short on it. And it brushes the market cap. But becoming a security token means that right now there's no way to short a security token because there's no rehypothecation. Traditionally, I think you remember this with GameStop, folks talked about GameStop and on Reddit, and they were saying, listen, this is crazy. I buy GameStop. I put it out, let's say Morgan Stanley, Morgan Stanley rehypothecates it or lends it to hedge funds who then short it. That doesn't really work. With the digital securities, what we've done is we've set them up more like a DeFi way where you keep it and you store it on your own wallet. Now, in the future, our belief is that folks won't hold their hold digital securities on a wallet on their phone, along with NFTs of their driver's license, their birth certificate, their college diploma, their VAC certificates, and they'll also hold their digital currencies on their phone and their own wallet. And they'll be able to use that to access and transfer money or securities going forward. So we're sort of like we think of ourselves as the backbone of this industry. Obviously, we had to be leaders. And so when people talked about Nike moving on to the blockchain or Amazon, moving their equity on the blockchain, there was no way to do it before. Before we came along, a security token or a digital asset was just for wealthy folks, accredited investors. And they were private securities, Reg D or Reg S. And we said, well, if someone like Nike wants to move the blockchain, they have to open it up to retail investors. So that's why we put together our perspective. We proved that you can do something in a way that it's regulated. And now we've got a nice pipeline of folks that are coming to us and saying, look, we want to raise capital the same way you did. And we'll be releasing a lot of this over the next year. Now that leads me to my next question. You touched on it a little bit. Regulators have been cracking down on crypto over the last few years. Luckily, INX has already obtained licensing and formed relationships with regulators. Can you talk a little bit about that? And now it has helped you stay well ahead of your competition. Well, the way we like to put it is it's better to have the regulators in the passenger seat than in the rearview mirror. And I think that a lot of folks in the crypto world came from, I'd say the technology space where they kind of looked at Facebook and said, well, you run fast and break things, and then you can fix them later. And the INX view was rather than be the hair, let's be the tortoise, let's work with the regulators because the financial arena is very different from let's say social media arena. You can't upset the regulators, you have to work with them. And certainly, you're right, regulators have been clamping down. When I see NFTs trading on a platform between two anonymous individuals for $50 million, that kind of smells a little bit to me like money laundering. And in the old days, if you wanted to move 50 million from one country to another, you stuffed it in a car, these days, you buy a JPEG from someone and you call it an NFT. And so INX, I think, really wants to work with the regulators in all spaces. We've worked with the states in the United States. That's what the money transmitter licenses are for that allow us to trade cryptocurrency. But we've also worked with the SEC and FINRA. And we have, you know, one of the only digital platforms where you can actually trade digital securities. And I think that's very exciting. It's extremely exciting. INX successfully completed the world's first SEC registered security token IPO raising. Can it tell us more about this? Sure. What we wanted to do was create a community. And you can do that, obviously, when you do a security token. And we sold tokens, these security tokens on the Ethereum blockchain ERC 1404 was standard. And we did it. And what we did was we sold 40% of our profits in the future, if we have any. So our cumulative net operating cash flow, 40% of that immediately gets stripped out. If it's positive and gets attributed to token holders. So we didn't sell equity. There was no voting rights with this. But it's something that we think a lot of folks are interested. I've had guys come to me, they've got vaccines for cancers. And they say, look, you know, we need to raise money about 100 million for the FDA to get through through the process. The traditional way would be to go to VCs or to private equity folks, sell a lot of your equity, a couple of board seats. And by the time you end up getting through the FDA, maybe the guys, the founders aren't there anymore, and they've just sold their IP. If they did a security token, and they base a percentage of should they be successful, that then they would have that cash flow go to the token holders. Well, you know, that to me, that's like, that's a gimme, right? I mean, if if I think that someone's going to cure for cancer, I don't really care, I care less about the IP and I care more about the profits is going to be coming out on the back end. And there's a lot of people that have come to us. You know, one of the most recent things and very exciting things was we signed an LOI with a company called ALK Capital, they're the owners of Burnley Football Club. Now Burnley is in the Premier League in the UK. And they've got you know, soccer team, and they've got other sports and franchises that have game day revenues or transfer fees, that sort of thing. They're looking into ways that they can engage their community. Think of it like this, if you sit there in your company, and you've got 10,000 or 100,000 or a million people that support you, and you want to raise capital, why don't you go to the folks, your fans that support you, your community, and you know, go to them and say, look, we'd like to raise capital, would you like to be involved like skin in the game? Traditionally, for you know, football game, you go there, you watch it, you have a pint, so you maybe have a pie and beans, and then you move on. How about if you actually got some profits from how the team did? And I think that that's the sort of thing that's very, very exciting. There's a lot of companies that want to get into that space. So it's not just about selling equity as a digital security. It's also about selling cash flows. And there's infinite different ways you can use a security token or a digital security in that space. Now the company also recently completed two key strategic acquisitions. Can you tell us a bit about these? Yeah, certainly. Well, we've done a lot of acquisitions. I say that the most recent ones was our purchase of open finance, open finance was a broker dealer and ATS for digital securities were very fast into the game, one of the first. And they ran out the gate and they were offering really private securities only to accredited investors. And when you do that, you know, maybe there's a thousand people or 2,000 people you can sign up for your platform. Maybe only 50 will log in every day and see where the price is. And our view was if you really want security tokens to be successful, you've got to bring in retail, which after buying that we brought the INX token on to that and listed it there. So it's very key. Now the really interesting thing about that purchase was the way that you do custody. It's not the way you do custody at a traditional ATS or where you do custody on the platform. Rather, what we do is we did custody the same way that DeFi is done, which is using MetaMask wallets. Now when we went out there and said we were going to do this, I'd say maybe there was a million people using MetaMask wallets. Well, today there's 17 and a half million people on a daily basis, really on the back of the NFT craze, because that's how people trade NFTs and it's also how people trade DeFi. So I think, you know, again, we got ahead of the game and we figured out the way to do it correctly, but it also now allows us to trade 24 hours a day, seven days a week. Another purchase we made was the token soft transfer agent. That's going to be a very interesting force. It's going to allow us to do what we call nose to tail. So when someone comes to us and says, look, we want to raise capital, we say, oh, absolutely, we can print the tokens for you. We can act as the transfer agent and watch, you know, as tokens go from one person to the other. You could also watch that on etherscan, by the way. And on the back of that, we then go into the, after we've printed the tokens, we go to the broker dealer that we purchased and there we can help raise the capital. For some, we can put an invest now button on someone's website. We can then introduce them to the community, to other folks through social media, and then folks will invest and then after they've invested, they've raised the capital, we can then list it on our ATS. So nose to tail, it's a fantastic thing. Now, also having the cryptocurrency trading is also very interesting because it means that folks can take Bitcoin or Ethereum, transfer it in there, have it translated into dollars, use the dollars to purchase securities, and then trade. And that means they can trade 24 hours a day and they can do transfers 24 hours a day, even on weekends because we don't have to rely on the fiat banking system. What are the benefits of security tokens and how is the INX using this new financial instrument to open the crypto and security token market to the entire investment community? Well, the benefits for running security tokens are, well, as an issuer, the benefits are, if I want to pay a dividend, I can pay it directly into someone's wallet, I could pay it in Ethereum, I could pay it in USDC, I could pay it in dollars into their bank account. So that's not bad and I cut out a lot of middlemen. Maybe traditionally, if an issuer has a $100, they need to give it out as a dividend, maybe $97 gets into someone's pocket. So it's much more efficient. The other one is we're settling on the blockchain and everyone gets to hold their tokens themselves and custody themselves. I think that takes out a lot of middle men as well. So it becomes much more efficient. The whole capital raising becomes more efficient too because you're not dealing with, let's say, an investment bank that goes out there to raise the capital and then comes in and said you can raise the capital yourself and you can cut them out. I think that's very interesting, but the ability to trade 24 hours a day, 7 days a week, 365 days a year is phenomenal because it matches what you can do with crypto and that crypto never sleeps and our view is that security shouldn't sleep either and whether it's a private security like a rag D or rag S or whether it's a public security that's done through an F1 or S1 prospectus, people should be able to trade it in their time zone in their time and I think that that's something that we've figured out, we've managed to thread the needle on that and that's going to be very exciting. Can you tell us more about INX's robust and proprietary trading platform and why it's different from other crypto trading platforms? Well, I'd say that most platforms say they're robust, obviously, but a lot of guys end up licensing their technology and what INX did is we built the technology from the ground up ourselves. So we have our own developers, we've got our own folks that put these together and what we're doing in the first quarter of this year, we'll be releasing an app where you can trade cryptocurrency right now, you can only do it on a website and then later on in the summer, we'll be introducing an app that's going to have the securities on it and the cryptocurrencies and you can trade back and forth between the two, so like a UI, UX experience that hasn't been done before, something like a Coinbase doesn't offer digital security, someone like Kraken doesn't either or Binance because they don't have the licensing but we've got the licensing, so in the front end, the UI, UX, that's to the user, they don't see all the different regulators behind it but once they start trading, in the behind the scenes, we're going back and forth between two different platforms and many different regulators. Now, INX has a management team with over a century of cumulative experience in capital markets, banking and financial technology. Can you tell us more about the key players on your team? Sure, I'll tell you, from the get go shy to take our CEO, attracted some interesting folks, we got Charlie Lee was one of the earliest investors, he invented Litecoin, Ricardo Spagni's behind Monero, and then he attracted folks like Alan Silbert, Alan is my colleague in New York, myself obviously, I've got about 25 years of experience working at Morgan Standing, running proprietary trading at Merrill Lynch in Latin America at Standard Chartered, and then he also brought in a board of David Wield who is the vice chairman of NASDAQ and the inventor of the jobs actor security tokens, Tom Lewis, Tom is very well known, he was the CEO of Ameritrade and the Green Exchange, and also Nick Thadani who's well known in Canada, he was the CEO of the Toronto Stock Exchange. So a lot of folks there, but also Jonathan Azarwal who you may not know, but I think the crypto community knows, he was the first guy to come up with a way to borrow and lend Bitcoin, he ended up selling his company to Alex Machinsky who runs Celsius and became Celsius, that company. So we've got a lot of experience, our CTO, Paz Diamant was the CTO over at eToro X, and we managed to bring him over as well to work with us, but we've got an incredible team of guys that come from the blockchain space and the traditional finance space, really working together with one common vision, one common goal was set out by Shai Dutikar, CEO. What should investors watch out for from INX in 2022? Well, 2022 is going to be all about apps, we've got obviously the two apps coming that I just talked about, but also raises, you know, we're going to be raising a lot of capital for different types of companies. I've talked about ALK Capital and Burnley Football Club, but there's a lot more companies as well. We've got Bitcoin miners that are looking to raise capital. We've got folks with gold in the ground. This is very interesting, you know, that kind of thing where you've got, you know, pristine wilderness, but I have actually had gold under it. Now, you can't get to the gold because that's going to upset the environmentalists. So instead, let's sell that to the environmentalists and they can own something that has gold. But Bitcoin mining is very, very interesting right now. We've got Bitcoin miners and some of them have an idea where on a monthly basis they'll give out a dividend, maybe like, you know, half of the Bitcoin that they're mining. Now that comes out to something like 3 to 5% yield on a monthly basis, around 87% yield per year. Coming out with projects like these, I think, is going to be very, very exciting for folks because I think a lot of people want to own securities, but they also aren't sure about owning, let's say, crypto as the underlying. And different tax laws in different countries are more advantageous a lot of the time for owning securities rather than owning crypto. So, you know, we're managing to thread the needle for a lot of different issuers in terms of what they're looking for. So, new issues, look out for that, and also look out for the apps. Douglas, how can investors get in touch with the company? Well, they can get in touch with the company really by following us on social media, DMing us over there, that's at INX Group, or you can get in touch with me at DCBorthwick. You can also go to INX.CO, that's our main website, and it's got a lot of different emails and contact information there. Thank you for your time today, the Chief Business Officer of INX. Now, I must remind everyone that Rich TV Live is strictly for information and education purposes. Please, do your due diligence, do your research before you invest in anything we talk about or discuss here on Rich TV Live. In saying that, I think this is a very special project, extremely unique. Put them on your radar, put them on your watchlist. I think they're extremely undervalued, underappreciated, underexposed, and thank you for joining us today. Douglas Borthwick, the Chief Business Officer, would love to invite you back if you ever have any big breaking news or anything you want to discuss back on Rich TV Live, Douglas. Rich, thank you very much, and I'll add this disclaimer for myself. Nothing that I'm saying is investment advice and I've got no licensing to give any investment advice. We really appreciate being here. Underexposed, I think, is certainly something that's very true about our organization. Take a look at us, find out about us, and now we're trading on the NEO as well for the equity, so that's very exciting too. Absolutely. Thank you so much for having me, Rich. Hey, my pleasure. Love to have you back anytime we have big breaking news or anything you want to discuss. I must remind everyone that Rich TV Live is always here for you. If you like the videos, please smash the like button, comment them below, share the video everywhere, and subscribe. If you're not winning, you're probably not watching because we bring you the winners and we bring them to you first. Put INXD on your radar, on your watch list. Thank you for watching everybody. Thank you for joining us, Douglas, and we'll see you guys soon. Thank you very much.