At Mt Pelerin, we want to create a blockchain-based tokenization platform that would bring the entire bank’s* balance sheet on chain.
Our envisioned tokenized banking ecosystem would bring unprecedented service quality, cost competitiveness and investment opportunities to individuals and businesses alike
It would also be the long-awaited bridge between traditional and crypto assets, boosting the platform's global attractiveness.
Here are the three main pillars on which our plan is built:
Money deposited on current accounts will be fully kept in reserve as high quality liquid assets. Unlike other banks, we will not reinvest our customers' deposits in risky assets for our own profit.
Our plan is to provide services through marketplaces, where our customers and third party providers would connect and freely offer or request services at the conditions they choose.
Unlike traditional fractional-reserve banks, our goal is to give up on-balance sheet credit and keep deposits at 100% in reserve, with institutional custodians.
The state of total deposits and their evolution will be recorded on Ethereum blockchain and will be completely transparent to all in a permanent and immutable way.
With this 100% reserve policy, we want to bring a truly safe and transparent solution where assets remain in the control and at the immediate disposal of their owners.
The core principle at the heart of our project is the blockchain-based tokenization of the entire bank’s balance sheet. Unlike other crypto-banking projects that merely offer to deal with cryptocurrencies as banks, Mt Pelerin proposes a paradigm shift with a comprehensive banking system on blockchain.
Our ambition here is to bring a viable solution that leverages the benefits of the blockchain 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 vehicles.
This approach would provide a bridge between Bitcoins, Ethers and other cryptocurrencies with real-world assets. Such a bridge would finally facilitate exchanges between the two worlds, and allow cryptocurrencies to become a much better mean of investment.
In practice, Mt Pelerin aims at reflecting assets and liabilities on chain through the issuance of ERC20 tokens, immediately available to be used and traded on our marketplaces.
With tokenization, we want to build an entire bank* on chain.
The core feature of Mt Pelerin that our tokenization concept would make possible is a marketplace system that will be available to our customers.
Directly integrated into an e-banking, this system would aggregate the products and services from multiple providers, providing an exceptional level of choice.
Beyond accessing a large panel of offers, our marketplaces would also connect customers between them and let them offer and request deals in virtually unlimited ways.
Our vision with our marketplaces is to create a stable and secure environment to empower individuals and businesses alike with the management and growth of their money.
The first marketplace we want to implement is a currency exchange offering spreads 10 to 20 times cheaper than traditional banks.
On it, customers would be able to easily exchange 30 fiat currencies plus Bitcoins and Ethers (subject to relevant regulatory authorizations).
Built with a liquidity bot whose purpose is to act as a market maker, it executes transaction back-to-back with fiat and crypto brokers.
Competitive and compliant crypto-fiat currency exchange for everyone.
Just like on our spot exchange market, we intend to connect market makers and liquidity providers on a future and 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 businesses due to costly 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.
We want to democratize entire asset classes for the crowd to own.
With our loan marketplace, we want to give our customers access to a vast number of loan providers around the world in a single place and select the one who answers their criteria the best.
In practice, users would be able to search loan proposals or directly post their own loan requests with their desired conditions (loan purpose, principal, interest rate, repayment terms, etc.).
Those loan requests could be answered by another user or several of them, by credit institutions or by other lending platforms (ex: Lending Club) via API calls.
Automated contractual relationships that can be sold and transferred.
Back-to-back market making with loan providers (ex: UBS, BNP Paribas, etc.) and platforms (ex: Lending Club) able to provide their products on our loan marketplace via API calls.
Loans could be collateralized on our platform, including with cryptocurrencies.
Loans could 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 in separate regulated entities.
Another marketplace we envision is to offer savings products, such as interest paying savings accounts but also other types of products like the Swiss third pillar retirement plan system, and more.
Those savings products would 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 fund dedicated to invest in savings products to grow this market and its community.
Again, the interest of users here would be to have access to a larger panel of savings providers who could provide services through the power of smart contracts, and to have passive and active fund management options that would fit various risk/reward profiles (restrictions apply, notably MiFID II).
Perhaps even more than individuals, 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, commercial banks tend to lose interest in providing financial services to SMEs as the risks and rewards involved with this scale of business do not correspond to their strategy anymore. Nevertheless, these SMEs (not only nascent tech start-ups but any small scale business) are the ones driving job creation, dynamism and growth in any economy.
With a dedicated SME marketplace, our goal is to address this problem by leveraging once again the power of smart contracts to propose funding services and security (shares or debt) issuing on chain.
SMEs would therefore have access to a competitive marketplace with diverse services to find the solutions tailored to their needs at cheaper and more flexible conditions. And customers would be offered the possibility to have an impact on local economy by selecting the appropriate investments.
The Mt Pelerin bank* account that we want to offer will include access to a state-of-the-art e-banking interface, and the following features:
Able to dynamically allocate incoming currencies into the corresponding sub-IBAN
Corresponding to each currency the user wishes to process.
Between Mt Pelerin customers and external whitelisted crypto-wallets.
Via the SWIFT, SEPA and ACH routes.
*Subject to relevant regulatory authorizations.
When opening an account at Mt Pelerin, customers will receive a unique multi-currency debit card linked to their account.
The main advantage of this debit card is to be directly connected to our currency exchange marketplace and its many currencies, and enjoy this way the same benefits of this service.
Card representations are non-exhaustive. They are concepts serving an illustration purpose only.
Our debit card will be connected to our currency marketplace, offering the same cheap and convenient currency exchange.
Behind the functionalities of our platform and their benefits, our core IT system running them is designed in a fully open and modular way.
This modular design translates into intercommunicating bricks built on top of each other that communicate via APIs, with each brick managing a specific micro-service or function.
The purpose of this design is to let third party financial service providers join our environment to enrich it. Any person with a technical background can build and add a new, complementary or even competing micro-service block to our ecosystem without having to deal with the financial 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 investment an open ground layer and API-based micro-service bricks that are working, stable, secure and already fulfilling all the legal compliance requirements they are subject to.