The Sologenic ecosystem, sitting atop the XRP Ledger networks, enables traders to tokenize and trade Tesla, Apple, and virtually any other stock on over 30 stock exchanges globally.
Sologenic merges the traditional world of Wall Street with the fast and furious world of cryptocurrencies. The ability to trade stocks, even outside market hours, and to be able to trade them against any asset, even cryptocurrencies, makes this a hugely exciting project.
Traditional markets have a simply huge volume of trading. Cryptocurrency, in comparison, has a tiny trading volume. As soon as Sologenic helps bridge these two markets, then massive adoption of cryptocurrencies should be just around the corner.
What traditional finance has to say
SEC Chairman Jay Clayton believes “all stocks could be tokenized one day.” In addition, Brian Brooks, Acting Comptroller of the Currency, states that innovation from the cryptocurrency space is welcome within existing regulatory frameworks. He says that blockchain networks are the future “internet of finance” and that they present “a mind blowing challenge to the banking model.”
Sologenic — trade everything, anywhere
Finance is becoming a hard and fast use case for being revolutionized by the blockchain industry, given its transparency and immutability.
Imagine being able to trade on all the world’s principal exchanges, such as the NASDAQ, London, and Hong Kong exchanges, trading in and out of stocks, ETFs, commodities, and cryptocurrencies; all from one fast and secure platform.
As things stand, if you are in one country, trading stocks listed on exchanges in other countries can be extremely time-consuming and expensive as you will likely have to set up foreign bank accounts and transact through several brokerages.
Also, traditional markets are loaded against the small-time investor given that you are often required to have a specific minimum amount of capital to start with and have an “accredited investor” status in order to trade directly in specific foreign markets.
Therefore, barriers in the traditional market system have kept the small-time investor out. If you didn’t have wealth or you were from a country with certain political persuasions, then you were barred from this rich man’s playground. The millions of average Joes had no place in this system, and Sologenic is setting about changing this.
With the Sologenic platform, absolutely anyone from any country, irrespective of wealth, can access all markets, buy and sell, and have complete control over their assets without any government or third-party telling them nay.
Tokenizing a world of assets
The SOLO token is what makes the entire Sologenic ecosystem possible, providing liquidity for settlement with brokerages, stock markets, and suchlike.
For example, if an investor wanted to buy Tesla stock (TSLA), they would just buy the stock through the Sologenic platform. It is then instantly tokenized on the XRP Ledger and held through a third-party trust company. A stablecoin is generated, backed 1:1 with the real world asset, and the token is then denominated TSLAƨ.
The advantage this would bring investors, besides being able to buy all equities on one single platform, is that, firstly, the transaction is fast due to the XRP Ledger (4 or 5 seconds). Secondly, the investor would be able to trade these tokenized assets at any time outside of market hours against SOLO and XRP on the Sologenic DEX (bearing in mind that the actual tokenization process can only take place “during” market hours).
Another advantage is that an investor can trade it against anything else once an asset is tokenized, whether that be another stock, commodity, or even cryptocurrency. Finally, tokenization enables the fractionalization of assets. If you don’t have enough wealth to buy a highly-priced asset share, then you can pay whatever you decide and then own a fraction of it.
Why the XRP Ledger and why not Ethereum?
The Sologenic team invested a lot of time and resources into researching the best platform for such an extensive ecosystem. They looked at large blockchain platforms such as Ethereum, Stellar, and others. However, for the particular use case that Sologenic requires, XRP was a natural choice, so Sologenic became the first large ecosystem to be built on the XRP Ledger.
It’s well known that XRP is about banking and the trading of financial instruments, which fits in perfectly with what the Sologenic platform is all about. Add to this the high speed, scalability, and security that comes with the XRP Ledger and then you have a match made in heaven for this partnership.
Progress for Sologenic
Complementary to the CoinField centralized exchange, the Sologenic DEX, built on top of the XRP Ledger, will provide a decentralized aspect. When launched, users will be able to trade tokenized assets against SOLO or XRP. The DEX will be built into the SOLO wallet app (downloadable on the App Store and Google Play). This will allow users to have complete control over their private keys and the assets therein.
The SOLO card also gives monthly cash back bonuses, discounts, and other benefits. In addition, staking rewards of up to 20% annually are awarded to those who agree to stake their SOLO tokens and provide liquidity to the ecosystem. Flexible or fixed-term payouts are available for participants.
Finally, this November 18th, Sologenic hosts the DeFi virtual event of the year – “DeFi x Solo.” Free to register, this event will explore how DeFi is reshaping the global economy. Several industry experts will speak at the event. These will include DeFi and crypto thought leaders, blockchain advocates, and representatives from traditional financial markets.
One of the events will showcase the process of “tokenization” using a simulator, so attendees of the event will be able to practice this technique without using real money. There will also be an AMA for all questions about the Sologenic project and a SOLO giveaway for lucky participants.
For more information on the DeFi x SOLO event or to book your FREE tickets, click here.
Bob Ras, CEO of CoinField, sees Sologenic forming the backbone of all forms of equity trading in the next five years. He wants to change the way investors trade asset classes. If CoinField and Sologenic are successful, it may well be that any type of asset class can be traded with any other type, seamlessly, securely, and on just one platform.
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