We are Mt Pelerin and we want to be the bank* of the future, one built upon transparency, service excellency and blockchain technologies to simplify complex financial services and make them available to all.White Paper
* Mt Pelerin is a project to create a bank. It is not a bank and is not yet licensed as such by Swiss authorities.
At Mt Pelerin, we want to open up an unprecented scope of banking services & investment opportunities to everyone in a simple, safe and transparent way.
Deposits are 100% kept in reserve, at all time, and recorded on Ethereum blockchain in a fully transparent, permanent and immutable way.
Mt Pelerin will issue assets and liabilites on chain, on which smart contracts can be applied and traded.
Our platform will be built as a marketplace using smart contracts to let users request and offer financial services at their own conditions.
Users will enjoy a bank account with a master IBAN + 32 fiat & cryptocurrency sub-IBANs, and transfer funds easily via legacy route or via crypto wallet addresses.
Users will receive a multi-currency card connected to our currency exchange and always get the best exchange deal instantly wherever they are in the world.
Unlike traditional banks, Mt Pelerin will not do on-balance credit. Instead, 100% of the currencies deposited on our accounts will be kept in reserve at all time.
This reserve and its movements will be recorded on blockchain, and will therefore be completely transparent in a permanent and immutable way. Our reserves will be visible to all in real-time, while the state of individual accounts will remain confidential.
With this approach, we want to bring a truly safe and transparent solution where our clients' money will always be there at their disposal, whatever happens to us or the economy.
In order to unleash the potential of the blockchain for banking and financial services, we will tokenize all assets and liabilities linked to banking services.
With this system, our goal is to bring a viable solution to deal with the ownership and transfer of real-world assets. More specifically, we want to systematize the tokenization of any asset or liability and make them available to all as highly liquid and easily tradable investment.
In practice, every time an asset or a liability will enter Mt Pelerin’s ecosystem (through accounts or marketplace), it will be instantly issued as tokens immediately available to be used and traded on our marketplace.
For private account holder, our platform will support at launch the tokenization of the following 30 fiat currencies:
And of course, Bitcoins and Ethers.
Once real-world assets & liabilities become tokenized their trading not only becomes simpler,faster and more liquid, but smart contracts can also be applied on them.
To let you benefit from the world of opportunities smart contracts offer, we will build a marketplace with a user-friendly interface where you will have access to all the possible banking services beyond the deposit account and its functions.
On this marketplace, Mt Pelerin clients and third party service providers will be able to meet without all the traditional intermediaries and conclude deals directly with terms they control.
Our marketplace will give access to services, deals and opportunities normally out of reach for most, all in one place.
The first service of our marketplace will be a currency exchange, built with a market-making liquidity bot that executes back-to-back transactions with third party brokers such as Currencycloud and Vontobel for fiat currencies and Kraken and Bitstamp for cryptocurrencies. It will also execute transactions between Mt Pelerin users who placed exchange orders.
With this exchange, users will be able to choose to either get the best available deal immediately (market order), either trigger an exchange when specific conditions are met (limit order).
At launch, this service will offer spreads 10 to 20 times cheaper than alternatives.
Futures markets allow to hedge currency needs in the future. They are also a way to speculate on future values with leverage as future trading only requires to settle the difference of price at expiration (margin trading). This is also valid for cryptocurrencies, and derivative contracts can be concluded on Bitcoin and Ether as well on top of traditional fiat currencies.
Just like with our spot exchange market, we intend to connect market makers and liquidity providers on a future & derivative marketplace. To do so, we want to take the famous BitMEX platform as an inspiration and make a Swiss-regulated version of it for the crypto part.
Borrowing money has always been a hassle for people and companies alike, due to prohibitive interest rates, stringent terms & conditions, and very few choice alternatives. Lending money and earning interests is an even more complicated story for anyone who isn't a finance professional.
Get and provide loans at your own conditions.
With our loan market, our customers and partners will have a solution to meet individuals and companies from all over the world and find suppliers or buyers of loans that satisfy their own criteria and conditions.
In practice, users will be able to search the loan proposals of others or directly post their own loan requests with their own desired conditions (loan purpose, principal, interest rate, repayment terms, etc.).
Those loan requests can either be answered by another user or several other users (which in this case is crowd lending), by corporate loan providers (ex: UBS or BNP Paribas) or by other lending platforms (ex: Lending Club) via API calls.
Automated contractual relationships that can be sold and transferred.
External loan providers (ex: UBS, BNP Paribas, etc.) and platforms (ex: Lending Club) will be able to provide their products on our loan market via API calls.
Loans can be collateralized on our platform, including with cryptocurrencies.
Loans can be contracted for margin trading in both fiat and cryptocurrencies.
We plan to create in the future investment funds dedicated to grow our loan market and provide opportunities tailored for our community.
Our marketplace will also be built to offer savings products, such as interest paying savings accounts but also other types of products like the Swiss third pillar retirement plan system, rental security deposits and more.
Those savings products will generate yield by being placed with third party funds specialized in this kind of investments. Just like with the loan market, we also plan to introduce in the future our own funds dedicated to invest in savings products to grow this market and our community.
The interest for users here is again to have access to a much larger panel of savings providers who can offer their services in flexible ways through the power of smart contracts.
Even more than people, small and medium enterprises have a strong need to access a wider offer of financial services than what is normally available to them.
In most countries, banks tend to lose interest in providing financial services to SMEs as the risks and rewards involved with this scale of business do not fit their strategy anymore.
The problem is, it is SME that drive job creation, dynamism and therefore growth in any economy.
With a dedicated SME section, our marketplace will address this problem by leveraging once again the power of smart contracts to propose funding services and security issuing on chain. SME will therefore have access to a competitive marketplace with diverse services to find the solutions tailored to their needs at cheaper and more flexible conditions.
The standard Mt Pelerin bank account available to all customers will include access to a state-of-the-art e-banking interface, and the following features:
When opening an account at Mt Pelerin, customers will receive a multi-currency debit card linked to their account.
The main advantage of this debit card is to be directly connected to our currency exchange market and its 30 fiat + 2 crypto currencies, and enjoy this way the same benefits of that service.
For example, a customer having USD and EUR on his account travels to Japan and makes some shopping with his Mt Pelerin card.
If that person held JPY on his account, the card would directly debit that currency for the corresponding amount. But in our example, the customer has no JPY on his account and therefore needs to exchange currencies.
At this point, the customer has two options he can select on his cellphone: an automatic mode where the card uses the customer’s main account, triggers an exchange order on our marketplace and finds the best deal for the customer considering the mix of currencies he has on his account, and a manual mode where the customer has full control over which currency to use for the exchange.
In both cases, the exchange happens at a fraction of the cost of what other card providers charge. Once the option is selected, an on-the-spot order is triggered, and the card immediately settles the purchase amount in JPY.
This card will also support contactless payments, a geographical lock function, and an app with online payment approval notification for increased safety.
Moreover, users will also be able to generate an unlimited amount of single-use virtual card numbers that can significantly reduce the risk of payment fraud and unauthorized card usage.
A blockchain runs on computers, and like any other computing operation it is not free (energy, equipment, etc.). In the case of blockchain, those costs are called gas and it has to be paid each time an operation is run on the blockchain.
To make this system user-friendly, our platform will include a “gas station” to facilitate the daily operations of our customers. Each time they will perform an action that requires a blockchain transaction, our system will automatically prepare the required amount of gas to execute it. It will be calculated and shown to the user before confirming the operation, then deducted from the user’s fiat or crypto deposits, converted into the blockchain’s currency and finally paid to its miners.
Behind the functionalities of our platform and their benefits, our core banking system running it will be designed in an open-source and modular way in order to guarantee its evolvability and ease of access for third parties wishing to integrate it with their own services.
This modular design translates into intercommunicating bricks built on top of each other that communicate via APIs, with each brick corresponding to a micro-service or a function.
The business purpose of our platform technical design is to allow any third party financial service provider to join our environment to enrich it and benefit from it. Any person with a technical background can build and add a new, complementary or even competing service block to our ecosystem without having to deal with the fin part of FinTech.
The incentive for such providers to join us is the ability to leverage in a short amount of time and without heavy investments an open-source ground layer and API-based micro-service bricks that are working, stable and already fulfilling all legal compliance requirements. In this way, service providers can focus on the financial and business aspects of the creation of competitive and innovative services without having to worry about the core technological part and the hassle of going through their own licensing / authorization processes.
Mt Pelerin is proud and lucky to count talented and motivated people in its ranks, who are fully dedicated to make this project a complete success.