LCX: The First Potential Blockchain-Based Bank and Its Implications for ISO20022 (2024)

The following literature uncovers the sleeping giant in the crypto industry known as LCX exchange. According to the World Economic Forum, by 2027, more $8 trillion will be stored on blockchain networks. LCX plans to be at the forefront of this pivotal point in financial history.

LCX 101:

LCX is a pioneer in regulated exchange of digital instruments. It touts itself being at the forefront of regulatory compliance and cutting edge financial products. Notably speaking, tokenized fixed income bonds backed by digital and physical assets are one of LCX's most intriguing product lines. Specifically the Bitcoin based bond where a fixed 7% return can be earned on physical Bitcoin holdings exclusively to verified customers in the EEA ( European Economic Area). Other notable traits of LCX being the world's first physical validator as they have tokenized real diamonds on the blockchain. LCX is positioned to excel in the RWA (Real World Assets) tokenization economy as well as next generation financial institutions.

We will now explore the competitive advantages, ISO20022 implications, how LCX can function as the first blockchain based bank, and a potential growth analysis over the next several years as the crypto market and LCX continue to expand and create value.

Bitcoin Backed Bonds:

1. Stability: Bitcoin backed bonds provide investors with a stable investment option as they are backed by the value of Bitcoin, which has proven to be a resilient and valuable asset over time.
2. Diversification: Investing in bitcoin backed bonds allows investors to diversify their portfolio by adding exposure to the cryptocurrency market without directly holding Bitcoin.
3. Fixed Returns: Bitcoin backed bonds offer fixed returns, providing investors with a predictable income stream over the bond's duration.
4. Liquidity: LCX Cryptos' bitcoin backed bonds are designed to be easily tradable, providing investors with liquidity and the ability to exit their investment when desired.

See Also

LCX (LCX) Price Prediction 2025, 2026, 2027, 2028, 2029 and 2030 • crypto.roLCX Twitter Space AMA Recap — LCX Twitter Community with Monty, CEO & Founder of LCX.comLCX Price Prediction 2023, 2025, 2030 | Is LCX a Good Investment?Stenting of left main coronary artery stenosis: A to Z

Tiamonds Diamond Backed NFTs:

1. Tangible Asset Backing: Tiamonds are diamond-backed NFTs, meaning they are backed by physical diamonds. This provides investors with the assurance that their investment is supported by a tangible and valuable asset.
2. Rarity and Exclusivity: Tiamonds are unique and rare digital assets, making them highly sought after by collectors and enthusiasts. This rarity adds value to the NFTs and can potentially lead to price appreciation.
3. Transparency and Authenticity: Tiamonds are built on blockchain technology, ensuring transparency and immutability. This allows investors to verify the authenticity and ownership of their Tiamonds, enhancing trust and reducing the risk of fraud.
4. Potential for Fractional Ownership: Tiamonds can be divided into fractional ownership, allowing investors to own a portion of a valuable diamond. This opens up investment opportunities to a wider range of individuals who may not have the means to invest in a whole diamond.

In-House Cold Storage Wallets:

1. Enhanced Security: LCX Cryptos' in-house cold storage wallets provide a high level of security for storing cryptocurrencies. Cold storage wallets are offline and not connected to the internet, reducing the risk of hacking and unauthorized access.
2. Private Key Control: With in-house cold storage wallets, users have full control over their private keys, which are necessary for accessing and managing their cryptocurrencies. This gives users peace of mind knowing that they have sole ownership and control over their digital assets.
3. Multi-Currency Support: LCX Cryptos' cold storage wallets support multiple cryptocurrencies, allowing users to securely store and manage a diverse range of digital assets in one place.
4. User-Friendly Interface: The in-house cold storage wallets provided by LCX Cryptos are designed with a user-friendly interface, making it easy for both beginners and experienced users to navigate and manage their cryptocurrencies securely.

ISO20022 Implications:

1. Exchange Revamp: LCX is currently working on a major upgrade of its exchange platform. The revamp will include performance improvements, a more user-friendly interface, and a faster and smoother trading experience [2].
2. Token Issuance: LCX is not only acting as an exchange launchpad but also as a token issuer on behalf of projects. This means that LCX takes responsibility for filing notifications with regulators and conducting token sales in a legally compliant manner [1].
3. Tokenized Real-World Assets: LCX has introduced Tiamonds, which are tokenized real-world diamonds in the form of NFTs (Non-Fungible Tokens). Each NFT represents a specific diamond that is securely stored in a vault in Liechtenstein and fully insured. Tiamonds also incorporate the TIA token, which is a deflationary cryptocurrency. The TIA token rewards NFT owners through the "Own To Earn" model [1].
4. Secondary Market: LCX allows users to purchase TIA tokens on the secondary market through exchanges such as LCX Exchange and Uniswap. Holding TIA tokens in a non-custodial wallet enables users to automatically earn rewards through the smart contract, without the need for manual claiming or incurring gas fees [1].

LCX: The First Blockchain Based Bank

1. Regulatory Compliance: LCX has already secured nine regulatory registrations in accordance with blockchain laws by the Financial Market Authority Liechtenstein [1]. This demonstrates their commitment to operating within the legal framework and complying with regulations, which is crucial for any financial institution, especially a bank.
2. Comprehensive Crypto Compliance Suite: LCX has introduced a comprehensive crypto compliance suite, which ensures that their operations and services adhere to regulatory requirements. This suite includes features such as KYC (Know Your Customer) procedures, AML (Anti-Money Laundering) measures, and transaction monitoring [1]. These compliance measures are essential for a bank to prevent fraud, money laundering, and other illicit activities.
3. Tokenization of Assets: LCX focuses on the tokenization of assets, which involves converting real-world assets into digital tokens on the blockchain. This allows for increased liquidity, fractional ownership, and efficient transfer of assets. By offering tokenized assets, LCX can provide a bridge between traditional financial markets and the blockchain ecosystem [1].
4. Crypto Trading and Token Sales: LCX operates as a regulated cryptocurrency exchange for trading digital currencies and conducting token sales [1]. By facilitating the trading of cryptocurrencies and token sales, LCX can attract users and investors interested in the blockchain space. This can also generate revenue for the bank through transaction fees.
5. Banking Services: LCX aims to obtain a full banking license from the Financial Market Authority, which would enable them to offer a wider range of banking services [3]. This includes traditional banking services such as corporate banking, as well as crypto banking services. By combining both traditional and crypto-related services, LCX can provide a seamless transition between fiat and crypto currencies, addressing a significant challenge in the industry [3].
6. Security and Transparency: Blockchain technology offers enhanced security and transparency compared to traditional banking systems. LCX can leverage these advantages to provide secure and transparent financial services to its customers. This can help build trust and attract more users to their platform.

LCX Analysis 2023-2030

The following analysis is based on supply at a fixed 950million tokens. Assuming LCX will not mint anymore tokens, this supply will remain constant. The parameters measure revenue return over the next 2 bull run cycles based on LCX's unique competitive advantages and set of products. We used revenue as the basis for growth due to the industry being plagued by FOMO (fear of missing out) price predictions. While potential prices are listed in the data, we encourage everyone to know this is conditional to the growth in revenue and should not be used as a basis for investment. We are not advisors, we are enthusiasts who develop models to forecast potential growth of ecosystems, products, and other financial instruments. Please consult with an expert before making any financial based decisions.

As you can see we expect to see major growth from the LCX exchange and its unique range of full service banking/financial products. We expect 2026-2028 to be another bear market based upon the 4 year Bitcoin Halving market cycles. Therefore, we implemented seeing a 80% crash scenario throughout 2026-2028 as a means to engineer a healthy correction during a bear market based on previous crypto volatility. Obviously these dates, the revenue and corresponding price predictions are not factual and are based on other variables holding constant such as growth and circulating supply. The data here is meant to show how quickly growth can accelerate in the LCX product line in the next 7 years.

LCX Crypto is a regulated cryptocurrency exchange that is actively working towards compliance with regulatory standards, offering innovative product lines, and exploring the potential to become a blockchain-based bank. With its focus on regulatory compliance, asset tokenization, and comprehensive compliance measures, LCX Crypto aims to provide a secure and transparent platform for users to engage in the emerging blockchain industry.

Disclaimer: This is not financial advice and is for informational purposes only. Please consult with a qualified financial professional before making any investment decisions.

The following disclaimer is intended to inform readers that the information provided is for informational purposes only and should not be considered as financial advice. It is important to consult with a qualified financial professional before making any investment decisions.

Pat Trainor is an MBA graduate in Business Management from William Paterson University in New Jersey. With expertise spanning multiple industries such as Music/Entertainment, Finance, IT, and Blockchain/Cryptography, Pat is currently focused on pursuing a career in business analytics. Pat's additive areas of interest include data security, management, capitalization, and sovereignty. Additionally, Pat is an aspiring Real Estate investor/agent and enjoys bodybuilding.