Got a question about Mt Pelerin? Browse the categories below to see if we have answered it already.
Opening and maintaining a deposit account will 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 will be no minimum deposit.
Yes, as our ecosystem will be a fully integrated one. However, creating an account will be fast (10 minutes remote process) and free.
To create an account, clients will 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 will be invited to click on a link to start a video call with one of our operators. During that call (which will be recorded), our operator will check the person's identity and the ID document. The user will also have to accept our terms & conditions, and will be asked a few simple questions in order to define initial account limits. After that call, the user will receive an account opening confirmation.
Please note that the web platform for this process is already live, and is being used to KYC crowdsale participants.
Yes, through our webiste or app. However, in the near future new clients will be able to do their identity check in person at one of the national entities authorized to do so.
In Switzerland, those entities are the Swiss Federal Railways (SBB CFF FFS) and the Swiss Post, where clients will be able to do their KYC at any branch/counter.
Citizens from countries that are not under international sanctions will 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 will be fully kept in reserve. The majority of CHF deposits will be kept at the Swiss National Bank, with a portion being placed as HQLA (High Quality Liquid Assets) in Switzerland.
Deposits in other currencies will be dealt with under total return swap agreements with correspondent banks in other countries.
At launch, you will be able to deposit the 30 most used fiat currencies plus Bitcoins and Ethers on your account. Your account will have a sub-IBAN for each currency, and a master IBAN for the whole account that will be able to dynamically allocate incoming currencies to the correct sub-IBAN.
We will support Bitcoin and Ether at launch. We are open to supporting additional cryptocurrencies in the future or using a partner such as Shapeshift.
You will get a Mastercard or Visa debit card directly connected to our currency exchange marketplace. When using it, the card will debit the corresponding currency from your account if provisioned. If not, it will automatically get the best deal based on your deposits and current market rates. You will also have manual mode that will let you choose which currency to use.
That card will 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 you go through a program manager to deal with all these actors for you or you act yourself as a program manager and strike deals with all of them. Alternatively, you could become a principal at Visa or Mastercard and be able to be your own bin sponsor but you 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 will 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 clients - and our early adopters for sure, will get those fees waived under some conditions.
No, deposit accounts will not generate interest income.
To grow your money, you will be able to actively search and pick investments among an unprecedented panel of opportunities on our marketplace.
For passive clients, we plan to offer in the future a "savings" type of account where deposits will be invested into a fund dedicated to invest on our marketplace, and rewarded with a fixed interest rate.
Transfers between Mt Pelerin clients will be free.
Transfers to other banks (via SWIFT, SEPA or ACH) will be free on our side. Fees may apply on the receiving end.
Transfers to KYC'ed wallets will be free.
You will own a Swiss bank account and therefore you will 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 will 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 will issue warnings that you will 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.
Clients will actually be able to choose on which blockchain they want to issue their deposits/assets , and afterwards they will be able to switch from one blockchain to another effortlessly.
Currently, we support Ethereum and RSK, as both share the same technology stack (Web3 / Solidity). We will be able to integrate any blockchain that supports this stack.
We are currently working on a technical white paper that will address in depth 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.
There are two APIs: one on-chain (i.e. the smart contracts) and a more classic one off-chain (restfull API). We will keep them consistent with one another, however they might serve different purposes. The on-chain API aims at ensuring quality of services (enforced by smart contracts) at a certain cost (gas consumption) and time. The off-chain API aims 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 will be provided once a day on-chain. Liquidity will not be guaranteed in the on-chain orderbook, although it will be off-chain.
The main incentive is access the platform's liquidity and user base, and to not have to deal with the compliance layer (which is managed by our rule engine so that no micro-service or API call can breach compliance rules). We will 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 will 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 will be transparent when used. This will 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 will want to own their tokens in their own ERC20 compatible wallet, we will issue warnings and disclaimers about the client's sole responsibility for security.
No, until now Mt Pelerin has been self-funded by the team.
The important metric at Mt Pelerin is turnover rather than deposits. The revenue will be generated from commissions on services and products offered on the marketplaces and not from deposits. Revenue will therefore not directly depend on deposit volume.
Our business model is to create the best place for requesters and providers of financial services to trade together.
Our revenue will mainly come from margins and commissions taken each time a service is consumed. The structure will vary for each service according to its nature, but our general approach will be to charge the party consuming liquidity while the party providing it won't pay.
1. Our marketplace will aggregate the offers of a multitude of service providers, wherease other banks only offer their own services.
2. On the marketplace, Mt Pelerin clients will be able to choose between listed deals and posting their deal requests at their own conditions.
3. Mt Pelerin clients (individuals and businesses) will 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 will be easily divisible and highly liquid.
5. With an open design, our marketplace will 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 a market maker.
More generally, we will 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 will release one new service every 6 months approximately, depending on the amount of funding we raise during our crowdsale. Loans and SME finance will be priorities.
We have already secured a deal that will bring 16 global liquidity providers to our currency exchange.
By being fully automated, reducing operating costs, and by being connected to several large liquidity providers. The currency exchange marketplace works exactly like an order book where you can create an offer at your own conditions and wait to be matched (it is fully free for makers) or match the best current available price. The "worst" price on each currency pair is 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 bot is the ultimate liquidity provider, while Mt Pelerin won't take any market risk: every time it gets matched it hedges back-to-back on the interbank market through our liquidity providers. We will only take the 2 days settlement risk.
Yes, we will release the support for the exchange of other cryptocurrencies according to demand.
Any type of loan will be possible: simple loans, mortgages, corporate loans, margin trading, etc.
We will support two types of loans, uncollateralized and collateralized. Collateral backed loans will be mainly dealt as credit Lombard and as real estate/mortgages. The procedure will be the same as the one banks use today, with an external company being mandated to perform default and recovery tasks. We will have no counterparty risk, as the risk will be with the debt owner.
At launch, we will provide custody services for fiat and crypto currencies. Then, as we will progressively roll-out our marketplace services we will offer custody for more and more types of assets. On the long run, we will 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 will be concluded within our marketplace ecosystem. We 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 will 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).
Yes, we have already been in discussion with the Swiss financial regulator (FINMA) for a while, and have addressed their questions and concerns.
We have also carefully prepared the documents required for the application. The actual license application will take place in Q3 2018.
Usually a banking license in Switzerland takes 9 months on average. As we are a pioneer in the eye of the regulator, the process will be longer for us.
Until now, we have already clarified our business model for them, showed that it can fit in the existing regulatory framework and prepared most of the required documentation under the supervision of a Big Four firm.
By October 2018, we will need to present an executive committee as well as the minimum capital requirement of CHF 20 million.
After that, there will be a 3 months procedure with another Big Four firm reviewing our banking license application.
In Q1 2019, we will have our core banking system audited on security and compliance processes.
In Q2, we should obtain a conditional license that will let us prove that we respect all the directives and processes shown in our license application.
By summer 2019, we should be a fully live Swiss bank!
In the future yes we will apply for banking licenses in key countries according to our geographical expansion plan.
Until the incorporation of Mt Pelerin KYC is done through our sister company ibani.com, which has a financial intermediary authorization and is accredited to do KYC for its customers. Our KYC app has been developed in-house, and all uploaded documents are safely stored on servers in Switzerland.
Yes, it will be required for all clients.
Citizens from all over the world will be able to open an account at Mt Pelerin, with the exception of:
- People's Republic of China
- Democratic People's Republic of Korea
No, our board is brand new and still in development as we onboard key board members in perspective of our banking license application.
We strive to respect all local and global regulations from day one, and we have taken all measures to be GDPR-compliant. This will be an ongoing effort, not only because it is a regulatory requirement, but also because the protection and respect of private data is paramount to us and clearly complements our vision of transparency and fairness.
The Mt Pelerin trademark has been registered in the banking and finance industry. The core banking system will be partly open source under MIT license, 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 SA, a subsidiary of Smart Execution SA. Details will provided when the incorporation is complete.
Arnaud Salomon and the team.
79% will be owned by Smart Execution SA and 5% by private investors. 14% will be kept in reserve for future capital increase needs, and 2% will be reserved as incentive for key strategic hires. This structure will remain as such in order to protect private investors from any dilution.
We already do such due diligence on a case by case basis. We are now working on a proper standard with automatic thresholds and a process to document each case.
Just like in every banking contract there is a company that is nominated to be the local debt recovery agent and that will do the distribution of value of the remaining assets it manages to sell. Initially, we will only conduct collateralized loans. Later on, our future local rep offices will assist with the expansion of this service with more types of loans, in wider geographical areas.
Soon after our Swiss launch, we will 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. Some of us also work on ibani.com or Smex, mostly on projects that have beneficial impacts for Mt Pelerin as well.
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.
Didn't find what you were looking for?