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.
- 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.
- 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.
- 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.