Douglas Borthwick is the Chief Marketing Officer and Head of Business Development at INX Limited trading platform company. A financial industry veteran with over 25 years of experience and a financial technology expert, Mr. Borthwick has worked with the likes of Morgan Stanley, Merrill Lynch and Latin American FX trading business Standard Chartered.
INX Limited became in August, 2020 the first SEC Registered Security Token IPO (https://token.inx.co/) in the U.S. history after the SEC declared as effective its registration statement on Form F-1 filed in connection with the initial public offering of up to 130 million INX Security Tokens.
Douglas Borthwick Interview Focus
1. An Introduction about you: personal background, professional career, achievements...
- Tell us about INX in a nutshell.
- What is INX - problems it solves
- How does it work?
2. INX’s Mission is to bring regulated digital asset opportunities to institutions and retail Investors. Now that the digital assets industry has reached $1.3 trillion USD, there is a great opportunity for exchange. How do you expect to roll out this?
3. INX offers a number of solutions combining traditional markets expertise and a new disruptive flah approach. Can you tell us about these solutions and how they impact a trader/investor?
4. INX the first ever SEC registered Security Token IPO in U.S. history. Can you tell us more about this milestone and INX’s USA regulatory footprint? INX is led by an experienced and dedicated team of business, finance and technology veterans. Can you tell us about the team and main achievements?
5. What is your road map and how can people invest/trade in your platform?
6. Not many security tokens - digital assets succeed. How can you assure the investors that you will have volume and liquidity?
7. You commented recently on the media about one important topic: From Crypto to Tokens. The Great Migration. How do you see this?
8. NFTs had a watershed moment in 2021, which has seen digital NFT art sales grow by 2,800% to over nearly $200 million. Music NFTs are going mainstream as well. Are you planning to offer any of these solutions on INX?
9. Coinbase, the dominant regulated cryptocurrency exchanges, is nearing its debut as a public company with a valuation pegged at $100 billion. How do you see this IPO?
10. For people and investors watching/listening to us, why should they come to INX?
Douglas Borthwick Interview Highlights
Realizing INX Limited Vision. We wanted to create a platform that would allow for digital asset exchanges to be as safest and accessible for investors as possible. To make sure we could realize that vision, we needed to make sure we had the financial strength that such an endeavour required. That is why we created a Security Token and then do an IPO with that Security Token.
We also understand the importance of being compliant with current regulatory frameworks as the best way to create a safety net for the listing and trading of both our INC Token and other cryptocurrencies that would be later available through our platform. This is something we are striving for in the near future, because we believe in crypto’s potential and we want people / investors to feel confident about trading and using crypto. And we are trying to make this space a more secure place where everyone is welcomed.
As of now, we are legally operating in the U.S under the broker-dealer regulation and we are registered with an ATSs License, a trading system that meets the definition of “exchange” under federal securities laws.
Likewise, in the U.S. if you want to operate with cryptocurrencies, you need to have a Money Transmitter License, which is different in every State. As of now, we can operate in the 25% of all U.S. States and are in ongoing negotiations with the rest of the country. About a year from now we expect to have an MT License to operate in all the States.
The first ever SEC registered Security Token IPO in U.S. history. One important milestone for us was when we registered our Security Token with the U.S. Securities and Exchange Commission (SEC) regulatory body. What we did is we added security layers regarding current KYC and AML standards that are needed for other trading products. The SEC declared as effective its registration statement on Form F-1 filed in connection with the initial public offering of up to 130 million INX Security Tokens. We then became the first ever SEC registered Security Token IPO in U.S. history.
Creating a Security Token trading market. There are many cryptocurrencies that are being traded as utility tokens but I think the SEC at some point will declare them as security tokens. So I expect a delineation at some point which will affect many exchanges in the U.S.
An important point is that in order to create a $1.3+ trillion market you need to onboard both retail and institutional investors. We saw that back in 2018 when we sent our prospects to the SEC. And for that to happen you need to create volume, liquidity and an attractive market for these millions of retail investors that are already using decentralized exchanges. Once you have that, you also want to attract institutional investors, and they only go to exchanges that are compliant with current regulations.
About Security Tokens. People and traders might not know it yet, but security tokens are the way to go for the industry. Security tokens are essentially digital, liquid contracts for fractions of any asset that already has value, like real estate, a car, or corporate stock. Using security tokens means investors can expect that their ownership stake is preserved on the blockchain ledger. In short, they are a hybrid between the shares of a company and a cryptocurrency, with the advantage that they have a lower cost than stock shares and the security and advantages of blockchain technology. Security tokens can be applied in a different range of industries. In the creative industries, for example, artists can tokenize their intellectual property to make it fairer for creators and the public.
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Douglas Borthwick Biography
Douglas Borthwick graduated from Carnegie Mellon University with a BA in Economics and in 1992 he received his MBA in Financial Engineering from Yale University School of Management.
Since then, Douglas Borthwick has held various positions in the financial and trading industries. Starting off from Morgan Stanley from 1996 to 2005, managing foreign exchange derivatives trading groups in New York and London, with a strong focus on emerging markets.
He then ran the strategic trading desk at Merrill Lynch from 2005 to 2006, and the Latin American FX trading business at Standard Chartered from 2006 to 2009. In 2010, Mr. Borthwick managed trading and research areas for startup foreign exchange agency Faros Trading, a company that was later sold to FXCM in 2013.
Mr. Borthwick founded and built the Chapdelaine FX electronic and voice trading business for inter-dealer broker TP-ICAP from 2012 to September 2018.
As CMO and Head of Business Development at INX
Mr. Borthwick joined INX Limited as Chief Marketing Officer and Head of Business Development
in 2019. INX is a blockchain asset trading solution and a regulated cryptocurrency, security token, and derivatives trading platform in the U.S.
Under Mr. Borwtwick’s leadership, INX launched in August 2020 the first SEC Registered (F1) Security Token IPO in US history, for the development of their cryptocurrency and security token trading platform.
About INX Limited
Founded in 2017 and registered in Gibraltar, INX was founded by financial market, cryptocurrency and technology experts with a shared vision of revolutionizing the world of finance and financial crypto trading.
INX announced in January 2018 its submission of a confidentially-filed draft registration statement to the US Securities and Exchange Commission (SEC) for an initial public offering of the #INXToken. In August 2020, INX announced its initial public offering of up to 130 million INX #SecurityTokens. INX set the offering price at $0.90 per Token with a minimum investment of $1,000.
Four days after the INX Security Token IPO was announced, the U.S. Securities and Exchange Commission (SEC) declared effective the INX registration statement on Form F-1 filed in connection with the initial public offering. INX, then, became the first SEC Registered (F1) Security Token IPO in US history.
Douglas Borthwick and INX Limited links
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