XRP Dex is Tokenizing Stocks on SoloTex?🔥Sologenic CEO INTERVIEW

Episode Transcript
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Speaker 1 (00:00):
Let's get into token is stocks today and what that
might look like across the industry. You don't want to
miss it. Let's just jump right in. I want to
jump over to Sologenic decks. If you guys have not
seen this one before, this is a dex on XRP
or an XRP decks. This is going to be regulated
as well. So there's quite a bit happening. So we thought, hey,

(00:21):
let's get the experts in on the show to talk
about this and a new partnership. So I want to
welcome in CEO Mike McClusky, who is coming from Sologenic,
and of course Texture CEO Richard Johnson. Great to have
you guys.

Speaker 2 (00:34):
Great be here, Thank you, Paul.

Speaker 3 (00:35):
Perfect.

Speaker 1 (00:36):
So let's get into a little bit about what's happening
with the newly formed Solo Techs. Maybe Mike you can
kind of start it. What have you guys created here?

Speaker 2 (00:47):
Yeah, so thanks again, Paul. Great to be here. Mike
McCluskey and the CEO of Sologenic. We are a digital
asset ecosystem built on XRPL. We're actually the largest decks
on XRP. We have a wallet, we have a bridge
to the Cosmos ecosystem, and we also have our own
layer one called Korium, which is specifically designed for tokenization

(01:09):
of real world assets. Richard and Textra Capital and Sologenic
have been partnered for about a year now and we
are launching stock tokenization and trading in the US. So
really excited to be here, and yeah, looking forward to
the conversations.

Speaker 1 (01:26):
So, Richard, when you and Mike got together here, I
mean first of all token I stocks.

Speaker 3 (01:31):
This is a huge thing right now.

Speaker 1 (01:32):
We are seeing explosions happening in the market around this.
Larry Fink is going at every conference talking about how
this is going to shift the financial world. Richard, when
you looked at the potential here of what you guys
were doing at Texture, why Sologenic as a partner?

Speaker 4 (01:49):
So yeah, text has been around. Text Capital is a
sec finer regular Brokeerdala. We got into space pretty early.
We've been around about five years now. We are one
hundred percent focus on tokenization. We help clients raise capitalthor
security token offerings. We have an ATS for secondary trading,
and we've been focused in private markets pretty much exclusively.
It's a lot easier to do things in private markets

(02:09):
as I think that's a lot of how a lot
of other folks started as well. Actually, the idea for
token is stocks or using public equities and tokenization came
from Mike and Sologenic. So they came to us, Like
I said, me and Mike and I'm better in an
industry event, we got chatting. It was their idea and
we kind of collaborated around that, and back in February

(02:31):
we file paperwork with FINRA to get a to get
approvals for retail stock trading, which we we we and
we came out the other side at the end of
August or the beginning of September, I should say, And
now we're on the road to launching launching solo techs.

Speaker 3 (02:48):
So when is this going to go live? What's the date?

Speaker 4 (02:50):
Right now, we are planning for a soft launch before
the end of the year.

Speaker 1 (02:54):
And oh wow, okay, so you're ready to go, Mike,
Is this going to require I mean, because dex is
no KYC for the most part, is this going to
require KYC?

Speaker 3 (03:04):
It is?

Speaker 2 (03:05):
So you know, the best way to think about this
is where we're basically bringing trad fy to the cryptonative users.
But we're not reinventing the wheel with traditional finance just yet,
we believe that cryptonative users are looking for a way
to invest in stocks and diversified investments, so we're we're

(03:25):
kind of moving the ball down the field, per se.
But yes, there will be KYC and they'll still go
through traditional rails in some respects.

Speaker 1 (03:35):
I'm looking at your website here and it's got markets pause.
You don't have to, but this says twenty four to
five trading, so not going twenty four to seven?

Speaker 3 (03:46):
Why is that? Guys? What's going on here?

Speaker 4 (03:48):
So we want to go twenty four to seven, but
that's just not possible right now. So what happens is
when people you trade on Sodo Techs for our stock
Tokens product, we'll be accessing traditional financial rails, so that
I think, so that contrasts with some of the other
models out there which are kind of SPVs or OTC derivatives,

(04:11):
and we can kind of get into, you know, some
of the other differentiators that but essentially we're using traditional
rails so that gives people better liquidity that actually own
the underlying security. But we also have to stick to
what is avail are the available market hours now, and
that is only the twenty four to five I'd love
to see twenty four to seven trading come in.

Speaker 5 (04:28):
I mean, a big part of what we're doing is
tiding the Web.

Speaker 4 (04:31):
Three community, bringing in other features like stable coin funding,
twenty four to five trading, and get as close to
the crypto markets as we can, and of course they
can hold those tokens in their wallets.

Speaker 1 (04:41):
I think it's coming fast because I know the CEO
of NASDAC, she's she's been on record a couple of
times trying to address this.

Speaker 3 (04:48):
They haven't.

Speaker 1 (04:48):
It's kind of been the kicking and screaming thing coming along.
Not necessarily ready, but they know they're going to have
to do it to be able to compete with the
open markets that we're seeing out there. So that'll be
good to go. Let's talk about the idea of yield
on stable coins. So we're seeing this in traditional brokerages
and exchanges where they're parking, you know, all sorts of

(05:09):
stable coins where you can get yield, then you can
go into DeFi that's a competitive landscape itself.

Speaker 3 (05:17):
How does this play out, Mike? Will this work with
you guys eventually?

Speaker 2 (05:21):
Yes? So I think to Richard's point, this is sort
of phase one, but phase two we are looking for
more DeFi capabilities yield on some of these assets. Right now,
there's you know, three hundred billion dollars sitting in stable coins,
and we see an opportunity where investors want to diversify.
Quite honestly, for myself, I'd like to take some of

(05:42):
the stable coins that I have and invest in an
S and P fund and you know, average ten percent
a year. So there's a lot of talk around the
DeFi capabilities and yield, but my opinion is people are
looking for, you know, a way to diversify right now,
and stocks and tradition investments as the way to do that.

Speaker 1 (06:01):
Okay, all right, so you're telling me that's coming, which
I think we're going to see most traditional organizations out
there start to accommodate to what's happening just in general
in the market, just to stay ahead of where these
trends are going.

Speaker 3 (06:15):
I'm talking.

Speaker 1 (06:16):
I was looking at your website and in reference because
it's it's talking about not necessarily having to have a
bank explain to me how and I guess what off
ramp you're using. Would I be able to buy stable
coins without a bank. How would I do this?

Speaker 4 (06:32):
So, and this kind of goes back to your KYS
question earlier, let me clarify how this work.

Speaker 5 (06:36):
So customers will open an accountra texture.

Speaker 4 (06:39):
It is a permission system, So open accountra text, you
will do KYC on them and we'll do suitability analysis
and so forth. Okay, and they'll be introduced to our
clearing broker where who are They will also open an account,
so the clearing broker will ultimately hold any cash and
stable coins, but they'll be able to fund that account
with USDC or potentially other stable coins. So that's what

(07:01):
we mean by that that you know, you don't have
to go okay if you use y I transfer. You
know what a nightmare that is and how companies it is.
People these days, especially web free community, they just want
to scan a QR code, he go and send and
send in their USDC with our partnership with our clearing broker,
that will then be available in their trading account within minutes.
So again we want to have that same kind of retail,

(07:23):
real time feeling that the Web three community is used
to and then they be able to start trading and
buying Microsoft TESTL or whatever it is.

Speaker 1 (07:30):
All right, So Richard, what you're talking about is this
would require somebody to have an exchange account or a
wallet you know of some sort where USDC is living,
and then uh, they whether that's KYC or non KYC,
doesn't matter, they'd.

Speaker 3 (07:42):
Be able to just use this.

Speaker 1 (07:43):
It's just a wallet destination over within the brokerage side
of things here.

Speaker 3 (07:48):
Is that correct?

Speaker 4 (07:49):
Yeah, we're assuming we're talking to people who are natively
on chain.

Speaker 5 (07:52):
They already have USDC.

Speaker 4 (07:54):
If they have to go and get USDC, then they're
probably not the right target market for us Okay.

Speaker 1 (07:58):
All right, So not going after trad I guess trad
FI investors who are typically on robin hood or are
plugging in their bank via plaid or something of that
nature where it ties into it.

Speaker 5 (08:10):
Okay, you want to stay on chain, that's where that's
who we're going after here.

Speaker 1 (08:14):
All right, Well that's clear, then you've got a good
target market for that. Beyond that, I mean, because that
that definitely is an issue. What about like withdraw limits,
because this is a problem that we see with other
exchanges today. I won't mention names, but there's a handful
amount there that have daily withdraw limits what about with
you guys.

Speaker 5 (08:33):
So that's something we're still working through.

Speaker 4 (08:36):
You know, obviously it's the customer's money. We wanted to
be able to have access to it as quickly as possible.
Then maybe, you know, when it comes to deciding what
withdrawal limit is, they're going to be looking at, you know,
what trades are. Don't have the trades actually settled because
because still right us stop on a team plus on basis,
so you may sell it today, but the funds haven't
actually settled until tomorrow, so that may be a limitation.

(08:57):
So I can't give a direct answer on that. But obviously, okay,
it's the US as money.

Speaker 1 (09:01):
Yeah, I'm getting I'm sure fear of course if we're
talking about settlement, but I'm talking about we've got all
things settled, done that, and I've you know, I did
one hundred thousand dollars trade. Can I move it one
hundred thousand dollars out if that's settled or do I
have you know, because some of these exchanges, it's like
five thousand dollars a day in crypto that you can
move at a time. So that's a problem I think

(09:22):
for a lot of people right now.

Speaker 3 (09:24):
Would that be addressed with you guys.

Speaker 4 (09:26):
Yeah, I mean that's going to be something that we
decide with our clearing broker. So but like I said,
I can't give you an answer right now on that,
but I think I understand exactly what you're saying.

Speaker 5 (09:36):
We wouldn't want to keep people away from their money.

Speaker 1 (09:39):
Well, and you're the key is if you're going crypto native,
this is going into most likely a sale into USDC,
which is you know, that's that's fuel baby.

Speaker 3 (09:50):
You know, people got to go out and do trades.

Speaker 1 (09:52):
You know they're wanting to move that USDC around and
get into some defire. Yeah, exactly, So I understand. Hey, everyone,
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(11:40):
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how does Sologenic the decks side of it? If you
go over to the decks, let me pull it back
up here. If you go to the deck side of things,
does this plug into Solo decks or is this going

(12:01):
to be merged? How is this going to work between
the two products?

Speaker 2 (12:04):
Well, so not yet, is the short answer. We are
exploring how this could plug into Solo techs eventually, but
as of right now, no, it's not going to be connected.
It's sort of a standalone product and solution. We wanted
to make sure that we're doing this as compliant as
possible within the US regulatory environment, and so the Sologenic

(12:26):
decks right now will not be plugged in, but it
is absolutely something we're exploring. And stock tokenization, in my opinion,
and I'm sure Richard two is really just the beginning
of tokenization. We see the opportunity for all real world
outsets being tokenized, and the infrastructure that we've built with
Sologenic and our Layer one Quorium, we believe is going

(12:48):
to power the next generation of traditional finance in general.
And so yes, the Sologenic decks. I think at some
point will have a plugin of s for Solo Texts,
but phase one not yet.

Speaker 1 (13:03):
Okay, Unfortunately, any plans for a wallet or anything like
that coming down the pipeline.

Speaker 4 (13:09):
Solo tex is a web application and also be a
mobile application.

Speaker 5 (13:12):
We're getting that in the Apple.

Speaker 4 (13:13):
Store and the and the play Store right now. Also,
the stock tokens can be held in users self sovereign
wallets as well, alongside their existing crypt holdings. And I
know that Solo I mean, this is unrelated, but I
know that Sologenicals has a wallet product as well.

Speaker 1 (13:29):
So that's my point is being able to converge those
at some point. But you're saying right now this is
probably gonna stand ale.

Speaker 5 (13:35):
We've got a lot.

Speaker 4 (13:35):
I mean, yeah, So Sologenic has you know, a whole
set of with separate companies. Solo Techs is a is
a joint product we're developing. Sologenic has a bunch of
other products on the side. So do we we have
other kind of private RWA assets we're tokenizing. Eventually we
would like to kind of have seamless integrations between all
these things. But Stage one is Solo Techs, which is

(13:56):
a brand new, brand new offering.

Speaker 1 (13:58):
So, Richard, will this work like some other token I
especially if you think, I know, this is different than
X stocks or something like that. But would you be
able to utilize solo text to be able to get
your stocks and maybe use them and DeFi or something
of that nature, actually transport them out of solo texts
into another wallet?

Speaker 4 (14:19):
Yeah not at this point. No, that that is something
we want. So there's two paths forward for that type
of product. We need to have the SEC change certain rules,
which you know, we have a very friendly commissioner over
there now, crypto friendly, very forward thinking, so that's possible.
There's potential for exemptive relief or some kind of no
action there. Or we could follow the model that these

(14:40):
other folks have done. And the reason they're able to
do that is they've gone offshore outside the US jewarisdiction
to do that. However, that brings in and yeah, I
understand you can then take a tokenized tesla and use
it in a in a lending protocol or something like that.
But the thing is you don't own you don't actually
own your lying stock. Yeah, exactly, you have your accounter
party risk with whoever The SPV issue is whoever the

(15:03):
Sometimes it's structures as an OTC derivative and you have
a lot less liquidity as well, so.

Speaker 5 (15:07):
It's a bit of a trade off.

Speaker 4 (15:08):
But we are we are exploring that down the road,
and that might be for an off show model. That
might be where might the Sebtanic text comes in.

Speaker 3 (15:15):
It's interesting.

Speaker 1 (15:15):
Okay, all right, Uh what what blockdain did you guys
build on?

Speaker 2 (15:20):
It's Mike, So we're going to be building on our
layer one quoreum for this Okay. We see an opportunity
to bridge to XRPL, and we've had conversations with Ripple about, uh,
you know what we're building here, but for this phase one,
we're focused on our layer one quoreum.

Speaker 3 (15:38):
So that will be all in house.

Speaker 1 (15:40):
I'm assuming is it going to be an open to
where you could have developers building on it with you
or how's it going to work?

Speaker 4 (15:46):
Yeah?

Speaker 2 (15:47):
So, I mean Koreum is a it's a it's custom
to design for tokenization and so it's very all for friendly,
and we see an opportunity where we can bridge assets
from XRPL to the Cosmo's ecosystem. You know, one hundred
plus IBC chains we see that as a huge opportunity
for stock organization. Okay, and so absolutely there's going to

(16:10):
be some opportunities for developers to build on Koreum and
bridge to XRPL.

Speaker 1 (16:16):
Ripple goes out, they grab up Hidden Road. It's now,
I guess, going to be called Ripple Prime. Is this
a company that now would be somewhat competitive to solo techs?

Speaker 3 (16:27):
Would Ripple Prime be competitive?

Speaker 5 (16:29):
No, it's not at all.

Speaker 4 (16:30):
Actually, so Ripple Prime is you know, it's a prime
broco and I think it's focused more on kind of
lending and providing collateral in more traditional crypto markets, so
it's kind of like a tradi fi function within the
crypto markets.

Speaker 5 (16:45):
But I think it's in general it's a.

Speaker 4 (16:47):
Sign of, you know, how the space is maturing, and
you just one example of all the activity going on,
and I'd say that's not a competitor. Potentially there's ways
we could work with them, but I think it's a
great sign there's like so much tivity in the space
now and we're able to do so much more rounding assets.

Speaker 5 (17:04):
Yeah.

Speaker 1 (17:04):
Yeah, Are you guys going to be attending the SWELL
event in New York?

Speaker 5 (17:08):
I'm not, I know, you've been in the past, Mike,
We've been in the past.

Speaker 2 (17:11):
But this year, no, we won't be there.

Speaker 1 (17:13):
I wonder what kind of news we're going to hear
from Ripple, because there's they're most likely they're going to
drop a lot of information. I think that could start
to get intriguing in the markets. Last question I have
Mike to you, is the possibility of a solo text token.
Would that play into anything for the future for you guys?

Speaker 5 (17:33):
Possibly?

Speaker 2 (17:34):
So we have two tokens right now, we have the
solo token and the Koreum token. Yeah, we have explored
and evaluated whether something like that could make sense. We
would be doing it, you know, in getting Richard's opinion
on it, of course, but it's something that we're we're
thinking about, but as of right now, you know no

(17:54):
actual plan.

Speaker 3 (17:55):
How big do you, guys, Richard?

Speaker 1 (17:56):
How do You've been in this business for a long time,
You've had a chance to see the incumbents embraced crypto,
you yourself starting to see this as a major upside opportunity.
How big do you guys think this market can become?
Is it Larry Fink level where he thinks it's just
going to eat the world.

Speaker 4 (18:15):
Love Larry Fink. I'm a huge Fano loafing. Yeah, I
got into the space. I started this company. My background
is in traditional capital markets. I worked for a number
of different broker dealers, and in electronic space I worked
for soft Gen large investment bank. Then I got into
the digital asset space around you know, around twenty fourteen
twenty fifteen, because I love the technology and I realized

(18:38):
the potential that it had. It was super early then,
so as an analyst, I was writing reports and so
forth on the space. And then when Etheroeum came out
and he started having kind of the smart contracts, that's
where it really the light bulb really went off for me.
And yeah, I believe that tokenization can be permeated throughout
the entire capital market system.

Speaker 3 (18:56):
Yeah, well listen, guys, it's going to be go ahead.

Speaker 2 (18:59):
Mike, sorry, Yeah, I completely agree with that. I mean,
you look at the amount on chain within the past year,
it's tripled, and so I think going forward, we're going
to see an exponential growth of tokenized assets and TVL
and we're building the infrastructure to support that.

Speaker 1 (19:18):
Well, you guys are in the right place at the
right time. This is a big sector that's starting to explode.
I see as we see more and more tradify moving
at light speed to this side of the market, and
I think bringing in traditional finance into it because there's
you know, I was listening to a lot of the
talks at Money twenty twenty this week and which is
traditional finance trying to figure out what's happening, and you know,

(19:40):
obviously the crypto side of things. So good stuff out
there for sure. Guys, thank you so much for coming in.
We appreciate it.

Speaker 5 (19:47):
Thanks Paul, great one.

Speaker 1 (19:49):
Thanks you guys know what to do. Jump into our
Diamond Circle. It's our own private group. We do these
kind of breakdowns from time to time. If you like them,
drop some comments down below. We like to explore what
projects are doing, what's happening in the market. Outside of
just a token, of course, leave some comments. Follow me
out there on ex at Paul Baron. We'll catch you
next time right here on The Paul Baron Show.

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XRP Dex is Tokenizing Stocks on SoloTex?🔥Sologenic CEO INTERVIEW

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