Maecenas updates

Scaling up Maecenas - Financial Product & Regulation (Part 3)


Written by
Marcelo García Casil

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30 October 2018

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Scaling up Maecenas - blog posts (1)

This is the third part of the “Scaling Maecenas” series. You can read Part 1 here and Part 2 here. 

Financial Product & Regulation

As one of the main pillars of our company, our financial product is a key component within our delivery.

The innovative nature of our offering meant that we were required to spear-head the construction of a model that would allow us to bridge real assets into the crypto world.

Adding further complications, regulation does not always seem to keep pace with technology. The ever-changing regulatory framework present in the real world provides a tight and limiting environment under which we must operate in order to remain compliant.

Having faced many challenges, we are particularly happy with how we managed to lead a multi-disciplinary effort, requiring experts from various fields (e.g. Finance, Legal, Tech & Compliance to name a few) to successfully deliver our working beta product.

The facts

  • We were the first company to successfully tokenise and auction fractionalised economic rights of a multi-million dollar piece of art.
  • Albeit with some limitations (exclusion of US citizens and only accepting crypto as form of payment), our financial structure proved to be robust, whilst ensuring we remained 100% compliant.
  • The complicated regulatory landscape meant that we faced many unanticipated challenges, however, we managed to deliver on our promises with only minor delays from the road-map indicated on our white paper.
  • The scalability of our current structure can be improved; this is something we are actively working on. Despite this, we managed to keep costs under control to a great extent, with the auction itself proving to be profitable.

The reasons

  • Our main objective was to be the first to enter the market, ensuring we kept our competitive advantage.
  • We were advised that under our current structure, if we were to have accepted citizens from certain jurisdictions (for example the US), we would have exposed the company to legal risks.
  • Implementing a FIAT gateway which adheres to our high security standards requires a strong partnership with an agent we are 100% sure we can trust with our customers’ money.
  • Finding solutions to these two issues would have extended our timeline, but is something we are currently working on.
  • Whilst scalability was a concern, it was not our priority. As pioneers within Asset Tokenization, we were venturing into uncharted territory. This exercise offered us invaluable experience that we can apply to our feature endeavours.

Our plans

  • As the first to enter this market, we must continue to build on our competitive advantage.
  • Develop a structure that will allow citizens from all over the world to participate, particularly those from the US.
  • Launch partnership with our financial agent. This will allow all our clients to invest using their local FIAT currencies during the next auction.
  • Develop a legal structure that is as scalable as possible, keeping costs and transaction frictions to a minimum.

Topics: Maecenas updates

Marcelo García Casil

Written by Marcelo García Casil

Founder and CEO of Maecenas. Having previously worked at a number of large global banks, Marcelo has wide-ranging experience in designing and building large-scale enterprise-grade systems with a focus on investment banking and financial solutions. An an entrepreneur, Marcelo has specialised in blockchain and financial technology, primarily in areas covering tokenisation of assets and new capital markets. His strong technical architecture and leadership skills have earned him the recognition and endorsement from amongst his clients, teammates and peers. Marcelo frequently speaks and presents at industry events, conducts specialised workshops and training sessions, and provides expert advice to companies.

Please read the following disclaimer >

This blog post is illustrative and for informative and general education and discussion purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation. This information is provided with the understanding that with respect to the material provided herein (i) MAECENAS is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation, (ii) that you will make your own independent decision with respect to any course of action in connection herewith, as to whether such course of action is appropriate or proper based on your own judgment and your specific circumstances and objectives, (iii) that you are capable of understanding and assessing the merits of a course of action and evaluating investment risks independently.. MAECENAS does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, broker/dealer or any related services. You should consult your advisors with respect to these areas and any material with regards to investment decisions. You may not rely on the material contained herein. MAECENAS shall not have any liability for any damages of any kind whatsoever relating to this material. No part of this document may be reproduced in any manner, in whole or in part, without the written permission of MAECENAS except for your internal and/or personal use. This material is being provided to you at no cost and any fees paid by you to MAECENAS are solely general educational purposes. All of the foregoing statements apply regardless of (i) whether you now currently or may in the future become a user of MAECENAS’s platform or products and (ii) the terms contained in any applicable contract between you and MAECENAS.

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