While layer one blockchain networks provide a secure and transparent way to store and track transactions and data, they do not necessarily provide the necessary governance, risk, and compliance recordkeeping metadata necessary to prove that a token is a regulated security instrument.

There are several reasons why this is the case. First, most layer one blockchain networks were designed primarily to facilitate the transfer of value and were not intended to be used as a tool for compliance and regulation.

Second, the decentralized nature of layer one blockchain networks makes it difficult to enforce compliance with regulatory requirements, as there is no central authority that can enforce these requirements.

Finally, the lack of standardized protocols for storing and tracking regulatory metadata on layer one blockchain networks makes it difficult for regulators and compliance officers to access and verify this information.

One solution that has been developed to address this problem is the XDEX solution from 10XTS. XDEX is a distributed ledger technology ecosystem that embeds jurisdictional rules, supervisory, and compliance into any layer one blockchain token or smart contract. It provides a governance, risk, and compliance metadata infrastructure to help automate and synchronize regulatory digital asset information across global capital markets.

By embedding jurisdictional rules, supervisory, and compliance into its layer one blockchain tokens and smart contracts, XDEX helps to ensure that these assets are compliant with regulatory requirements. This is a significant benefit to the regulated securities industry, as it helps to reduce the risk of non-compliance and increase the transparency and accountability of transactions.

Overall, the XDEX solution from 10XTS helps to address the problem of a lack of governance, risk, and compliance recordkeeping metadata on layer one blockchain networks. It provides a way to automate and synchronize regulatory digital asset information across global capital markets, which can help to reduce the risk of non-compliance and increase the transparency and accountability of transactions in the regulated securities industry.