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Please note that the products, the services and the roadmap described below do not constitute a promise of execution. They are part of what Mt Pelerin wants to achieve, hence Mt Pelerin Group SA cannot commit on the good execution of all the products and services described here.
Opening and maintaining a deposit account would be free of charge.
Please note that for large deposits (limit to be defined), we may charge the cost of negative interest rates.
No, there would be no minimum deposit.
Yes, as our ecosystem would be a fully integrated one. However, creating an account would be fast (10 minutes remote process) and free.
To create an account, clients would have to fill a form with their basic information and upload a copy of an ID document (ID card, passport) as well as a less than 3 months old proof of address (utility bill, etc.).
Then, when ready the user would be invited to click on a link to start a video call with one of our operators. During that call (which would be recorded), our operator would check the person's identity and the ID document. The user would also have to accept our terms & conditions, and would be asked a few simple questions in order to define initial account limits. After that call, the user would receive an account opening confirmation.
Please note that the web platform for this process is already live, and is being used to register our token sale participants.
Yes, through our webiste or app. However, we also plan in the future to let new clients do their identity check in person at one of the national entities authorized to do so.
In Switzerland, two main entities are the Swiss Federal Railways (SBB CFF FFS) and the Swiss Post, where clients would be able to do their KYC at any branch/counter.
Citizens from countries that are not under international sanctions would be eligible to open a Mt Pelerin account, subject to KYC and AML compliance.
Unfortunately, we will not be able to accept US citizens at launch due to the cost and complexity of managing FATCA compliant accounts. However, this may change in the future.
Anything you deposit would be fully kept in reserve. The majority of CHF deposits would be kept at the Swiss National Bank, with a portion being placed as HQLA (High Quality Liquid Assets) in Switzerland.
Deposits in other currencies would be dealt with under total return swap agreements with correspondent banks in other countries.
At launch, you would be able to deposit the 30 most common fiat currencies on your account. Your account would have a sub-IBAN for each currency, and a master IBAN for the whole account that would be able to dynamically allocate incoming currencies to the correct sub-IBAN.
Later on, we also plan to add Bitcoin and Ether to those 30 currencies. Your account would then also have BTC and ETH sub-IBANs.
We are open to supporting additional cryptocurrencies in the future or using a partner such as Shapeshift.
You would get a Mastercard or Visa debit card directly connected to our currency exchange marketplace. When using it, the card would debit the corresponding currency from your account if provisioned. If not, it would automatically get the best deal based on your deposits and current market rates. You would also have a manual mode that would let you choose which currency to use.
That card would also support contactless payments, geographical lock, single-use virtual card numbers, and payment approvals.
There are a lot of actors in the loop for every transaction happening on the card network: card bureaux, issuers, processors, schemes (Visa or Mastercard), acquirers, bin sponsors, etc. Basically, Visa and Mastercard are just a royalty brand network, and either one goes through a program manager to deal with all these actors or one acts as a program manager and strike deals with all of them. Alternatively, one could become a principal at Visa or Mastercard and be able to be one's own bin sponsor, but one would still have to use and pay the approved processors.
Today, we are discussing with Wirecard UK for the bin sponsor and GPS for the processor (API server where every calls costs few cents) on a Mastercard scheme.
Yes you would be able to withdraw money in any ATM supporting Mastercard. When using ATMs there are fees that are usually charged to the card holder (in general it represents around 0.3%). Some categories of our future clients - and our early adopters for sure, would get those fees waived under some conditions.
No, deposit accounts would not generate interest income.
To generate yield, you would be able to actively search and pick investments among a large panel of opportunities on our marketplaces (restrictions apply, notably MiFID II).
For passive clients, we plan to offer in the future a "savings" type of account where deposits would be invested into a fund dedicated to feed selected deals on our marketplace, and rewarded with a fixed interest rate.
Transfers between Mt Pelerin clients would be free.
Transfers to other banks (via SWIFT, SEPA or ACH) would be free on our side. Fees may apply on the receiving end.
Transfers to identified and whitelisted wallets would be free.
You would own a Swiss bank account and therefore you would be protected by Swiss privacy laws. However, please keep in mind that the Swiss banking secrecy doesn't mean unrecorded transactions, and it only applies to Swiss residents. A judge in Switzerland can lift the Swiss banking secrecy on a specific account/person if he has evidence of criminal activity. We would always protect your privacy when transacting within our e-banking but if you withdraw your tokenized fiats or any other asset to a wallet which private key you control, we would issue warnings that you would be only in a pseudo-anonymous environment.
The purpose of the whole project is to bring an entire bank on chain, by tokenizing all the assets / liabilities linked to banking services.
This tokenization creates value in many ways, notably by allowing a larger audience to invest in previously unaccessible assets, by enabling a secondary market for all assets including previously illiquid ones, and by eliminating the need for many intermediaries and middlemen thus reducing overall costs.
Mt Pelerin’s official GitHub repository can be found here.
No, rather we are creating a compliant protocol to use blockchains for banking services.
The whole Mt Pelerin ecosystem is built as blockchain agnostic, in other words it is designed to be indifferent to which blockchain is used to make a transaction.
Our long-term goal is to let customers choose on which blockchain they want to issue their deposits/assets , and let them switch from one blockchain to another effortlessly.
Currently, our prototype supports Ethereum and RSK, as both share the same technology stack (Web3 / Solidity). We would be able to integrate any blockchain that supports this stack.
We are currently working on a technical white paper that will address in depth the security on our platform and outline our overall security policy. In our team, Cyril is of course managing security on the blockchain side, Sébastien on the front-end/back-end side, and Laurent has a strong background in ethical hacking and is a smart contract security expert. Our advisor Paul Wang is also a cybersecurity expert with over 20 years of experience in the domain among three of the Big Four.
Our plan is to make two APIs: one on-chain (i.e. the smart contracts) and a more classic one off-chain (restfull API). We would keep them consistent with one another, however they might serve different purposes. The on-chain API will aim at ensuring quality of services (enforced by smart contracts) at a certain cost (gas consumption) and time. The off-chain API will aim at providing the best access to the platform in terms of experience, speed and completeness. All data and operations should be available on both APIs but not with the same SLA. Market data would be provided once a day on-chain. Liquidity would not be guaranteed in the on-chain orderbook, although it would be off-chain.
The main incentive would be to access the platform's liquidity and user base, and to not have to deal with the compliance layer (which will be managed by our rule engine so that no micro-service or API call can breach compliance rules). We would also work on an incentive model to encourage development.
We are actually working for a very well-known private bank in Geneva on the storage and security aspects of crypto assets custody. We help them define their Hot/Warm/Cold strategy, the co-signing processes (several humans plus a rule based server as a co-signer), the split key, HSM integration and backup (where the loophole usually is), and their disaster recovery plan. This will be fully detailed in our technical white paper.
This precious experience will obviously be leveraged for Mt Pelerin.
There would be a 2FA, and we are working on HW 2FA integration as well.
Yes, we have this ability to freeze assets with a special key that would be transparent when used. This would only happen with a court ruling. We do not intend to make this tokenized layer with Visa-like chargeback mechanism. We can bring a lot of security for users who use our centralized e-banking (all in the bank's vault wallet), and of course from the Mt Pelerin wallet that is open source (forcing some policies on users). For users who would want to own their tokens in their own ERC20 compatible wallet, we would issue warnings and disclaimers about the client's sole responsibility for security.
Besides the team, the only investors are those who have participated in our first round of funding, representing 5% of equity.
The important metric at Mt Pelerin will be turnover rather than deposits. The revenue would be generated from commissions on services and products offered on the marketplaces and not from deposits. Revenue would therefore not directly depend on deposit volume.
The seed round has been completed on December 15th 2018. You can find a summary of the sale on this page.
Our business model is to create the best place for requesters and providers of financial services to trade together.
Our revenue would mainly come from margins and commissions taken each time a service is consumed. The structure would vary for each service according to its nature, but our general approach would be to charge the party consuming liquidity while the party providing it won't pay.
1. Our marketplace would aggregate the offers of a multitude of service providers, wherease other banks only offer their own services.
2. On the marketplace, Mt Pelerin clients would be able to choose between listed deals and posting their deal requests at their own conditions.
3. Mt Pelerin clients (individuals and businesses) would also be able to act as the supply of services, in others words provide money for currency exchange, loans and other types of investments in order to collect a return on investment.
4. Being fully tokenized, all assets and contracts would be easily divisible and highly liquid.
5. With an open design, our marketplace would let third parties join it and offer their owne complementary or competing services via API.
Mainly banks and Fintech companies, but also individuals who behaves like market makers.
More generally, we would be connecting banks and credit institutions to our marketplace in order to simplify their business by removing their need for various brokers who bring deals back to them.
Yes, a first version was drafted in 2014, with a second, more complete version of the platform made in 2016 with the first “compliance logic” smart contract for fiat tokenization.
Our priority will be to roll-out “paid & get paid” use cases (currency exchange, accounts, cards). Then, we want to release one new service every 6 months approximately, depending on the amount of funding we raise in total during our campaign. Loans and SME finance would be priorities.
We plan to partner with an institution that would bring 16 global liquidity providers to our currency exchange marketplace.
By being fully automated, reducing operating costs, and by being connected to several large liquidity providers. The currency exchange marketplace would work exactly like an order book where one could create an offer at one's own conditions and wait to be matched (fully free for makers) or match the best current available price. The "worst" price on each currency pair would be provided by our market-maker bot at 0.25% maximum bid-ask spread. In theory, exchanges that are at the market rate or even below are possible. This robot would be the ultimate liquidity provider, while Mt Pelerin wouldn't take any market risk: every time it would ge matched it would hedge back-to-back on the interbank market through liquidity providers. We would only take the 2 days settlement risk.
Yes, our ambition is to release the support for the exchange of Bitcoin, Ether and other cryptocurrencies according to demand.
We want to enable any type of loan: simple loans, mortgages, corporate loans, margin trading, etc.
We want to support two types of loans, uncollateralized and collateralized. Collateral backed loans would be mainly dealt as credit Lombard and as real estate/mortgages. The procedure would be the same as the one banks use today, with an external company being mandated to perform default and recovery tasks. We would have no counterparty risk, as the risk would be with the debt owner.
At launch, we plan to provide custody services for fiat currencies. Then, as we would progressively roll-out our marketplace services we would offer custody for more and more types of assets, including cryptocurrencies. On the long run, our ambition is to offer custody services for any type of asset.
Yes, using the third party solutions that already exist today for that purpose and that are used by most banks. We don’t plan to invent anything in particular here.
Contracts would be concluded within our marketplace ecosystem. We would take care of everything on behalf of the third party as an agent, with the final result being a regular contract.
Liquidity has a premium in the sale price that is very attractive for the seller. For the buyer, on top of being liquid an asset can be available for the first time and can even yield. For example, Mt Pelerin could very well tokenize a Picasso painting for its owner and sell it on its primary market. The ownership tokens would then be exchangeable on the secondary market, and could even yield as museums or galeries would pay to display it (instead of having custody costs embedded).
Mt Pelerin is working on obtaining relevant licenses from the FINMA, Switzerland’s financial regulator.
We are carefully preparing the documents required for the application. The actual license application would take place in late 2019.
In the future yes we would like to apply for banking licenses in key countries according to our geographical expansion plan.
Identity verification is done in-house, with a remote process that we have developed to match the requirements of Swiss regulation. All uploaded documents are safely stored on servers in Switzerland.
Yes, it would be required for all clients.
Citizens from all over the world would be able to open an account at Mt Pelerin, with the exception of the USA and most of the countries listed on AML blacklists.
No, our board is brand new and still in development as we onboard key board members in perspective of our banking license application.
The Mt Pelerin trademark has been registered in the banking and finance industry. The core banking system will be partly open source under specific licenses, and partly proprietary with key parts being the object of patents. Source code for our tokens, multi-signature smart contracts and wallet app is already visible on our GitHub along with their licenses.
The project was first established under Smart Execution SA, a company registered in 2017 in Geneva, Switzerland (link to the Swiss registry of commerce). However, the project in itself was born in 2014.
Mt Pelerin is now being incorporated as Mt Pelerin Group SA, a subsidiary of Smart Execution SA. Details are publicly available on the Swiss registry of commerce.
Arnaud Salomon, Mt Pelerin's CEO and founder, and the team.
5% of equity have been sold to investors as liquid (freely transferable) tokenized shares during our seed round. 95% are owned by Smart Execution SA, and should remain illiquid. Indeed, we only contemplate to sell shares in case of a large strategic investment. In such a case, shares would be sold under a strict shareholder agreement restricting transferability.
This equity structure is designed to protect our early investors from any dilution in case of a second round of funding.
Just like in every banking contract there is a company that is nominated to be the local debt recovery agent and that would do the distribution of value of the remaining assets it manages to sell. Initially, we would only conduct collateralized loans. Later on, our future local rep offices would assist with the expansion of this service with more types of loans, in wider geographical areas.
Soon after our Swiss launch, we would be looking at getting a NY Charter banking license in order to do our own compensation in USD. We are actually documenting this step with the treasurer/CFO of a really well known private bank in Geneva who supports our project.
You can see our team members, their citizenship and their LinkedIn profiles here.
Since 2016, the team has grown from a few people to a dozen members today who are all talented persons with key skills to achieve our vision.
Most of the team is working full time.
Our advisors all accepted that title as they truly believe in what we are doing. They are all actively supporting Mt Pelerin in their respective field, and help with key introductions, reflections and structuring. Some are spreading the word about us in their network, while others are helping produce specific documentation.
Our philosophy is based on values of excellence, transparency and honesty. They are the main drivers in everything we do in this work.
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