Business Plan
Mission & Vision BANKEX Proof-of-Asset protocol (PoA) is a standard that enables a new generation of assets and contracts creating decentralized capital markets. We are building Internet of Assets (IoA) on the principles of Bank-as-a-Service (BaaS), powered by Internet of Things (IoT) and Artificial Intelligence (AI) technologies PoA protocol is open for 3rd party fintech providers, AI and IOT labs, traditional financial institutions and asset owners. Both BaaS, the IoA and the PoA are revolutionary for optimizing the liquidity of non-fungible and traditionally illiquid asset classes, and for a customizable global banking API. BANKEX s technology can create fast, scalable, and customizable new products across complex and challenging financial infrastructures and asset classes. BANKEX is transforming the financial system for the digital age and creating transparent and frictionless global markets. BANKEX has fielded a highly experienced team from the banking and capital markets sector, along with top blockchain developers and machine learning experts. BANKEX will become the preferred partner to Banks interested in implementing smart contracts and making markets for traditionally illiquid asset classes.
Core Product Proof-of-Asset Protocol (PoA) Tokenization of real-world and digital assets: creating a new type of asset for the financial markets. How Proof-of-Asset works: STEP 1 We identify tangible cash flows (discrete goods or services) from a Client s asset / create cash flow leveraging 3rd party provider STEP 2 We add investor protection: Incorporate 3rd party asset and/or cash flow auditing and tracking based on IoT and / or AI technologies (tracked asset / cash flows) Minimize agent s risk by holding asset in escrow or sourcing reputable independent asset manager (secure asset) STEP 3 We use this trackable and secure asset or cash flow as collateral for issuing tokens. Token has two meanings: Security (IOU contract) Utility means of payments (1 token = 1 good or service) Mean of payments can also provide arbitrage opportunities. Token is supported by real-world good or service value. Markets where BKX Assets are traded: OTC-exchanges, dark pools, within banks, companies or financial organizations BKX asset exchange Global crypto-coins issued leveraging BKX protocol Security traded on Stock exchanges
Use Cases for the Proof-of-Asset Protocol
Use Case 1 Real estate secondary market for new buildings BUSINESS CASE Tokenization of to-be-built apartments to give flexibility to buyers and banks in deal financing and liquidity in committed funds. CLIENT Leading international bank with presence in 60 countries Country: Hong Kong Asset: Commercial and residential real estate Technology: Private real estate crypto custodian Token Economy: Token is backed by square meters of future apartment (example 1 apartment = 1,000 tokens). Token price is stable and it appreciates while the apartments are being built Escrow / Asset Manager: Reputable third-party auditor such as BALANC3 Exchange: Exchange is organized by asset owners (housing developers) powered by BANKEX
Use Case 2 Real Estate IoT pay as you go BUSINESS CASE Tokenization of commercial real estate based on real occupancy, pay-as-you-go for renters CLIENT Unconfirmed Country: USA Asset: Commercial real estate, square meters or units; units can be more flexibly adjusted for changing space requirements (for example renting a shared conference room when needed) Technology: IoT, movement sensors Token Economy: Token is backed by commercial rent based on pay-as-you-go model; 1 hour of occupancy = 1 token Escrow / Asset Manager: Reputable commercial real estate operator / property manager Exchange: Exchange / loyalty program organized by asset owner and BANKEX
Use Case 3 VC portfolio secondary market for private shares BUSINESS CASE Tokenization of private shares to reduce settlement time, cut legal and administrative expenses, and create liquid markets for private stock. CLIENT Two Venture Capital firms, one in New York and one in California Country: USA Asset: Private company shares Technology: Private shares crypto custodian Token Economy: Token is backed by private shares, 1 share = 1 token. All the tokens are exchanged to company shares in case liquidity event (acquisition or IPO) Escrow / Asset Manager: Reputable third-party auditor such as BALANC3 Exchange: BANKEX exchange
Use Case 4 Retail franchise network BUSINESS CASE Tokenization of future cash flows from new stores built, new stores financed by loyal audience of future customers. Tokens can be used to buy products in the network and token owners can vote for the next store location CLIENT Retail chain Country: USA & Russia Asset: Future cash flows from the store Technology: Preprocessing to collect interest as a part of revenue; payment wallet to spend tokens as loyalty currency in the retail chain Token Economy: Token is backed by franchise royalty revenues. Also token can be used to buy products in the chain, for instance 1 token = 1 burger Escrow / Asset Manager: Reputable franchise + third-party auditor Exchange: Exchange organized by asset owners (retail chains) and BANKEX
Use Case 5 Non-Profit: drinking water for Africa and India BUSINESS CASE Direct donations from foundations to end-consumers of drinking water in urban areas in Africa and India. Transparent process with 0-waste for donors. Donors buy water-coins, each water-coin is spent for 1 liter consumed drinking water. Donors can track consumption with granularity up to end customer. CLIENT Technology company producing filtration machines Country: Africa, India, Russia, and the United States of America Asset: Drinking water produced by autonomous freezing machines. Technology: Water filtration through freezing and defreezing; machine powered by solar energy; private blockchain for record-keeping; payment wallet to spend tokens as means of payment for drinking water Token Economy: Charity donors buy water-tokens. 1 token = 1 liter of drinking water. The money is spent by tech company to manage freezing machines, grow network and make R&D Escrow / Asset Manager: Reputable third-party auditor such as BALANC3 Exchange: Closed ecosystem of water coins (foundation-end-customer- freezing machines-tech company) powered by BANKEX
Use Case 6 Minery mezzanine financing BUSINESS CASE Financing minery setup CLIENT Green metal minery based in Europe Country: Hong Kong Asset: Future cash flows from the mineries Technology: Professional software and equipment used to calculate size of commodity deposits according to global standards Token Economy: Token is backed by cash flows from mined metal, 1 ore kg = 1 token. Banks or asset owner buy back all the token when the minery gets bank financing / generates enough capital Escrow / Asset Manager: Reputable independent mineries operator + third-party auditor Exchange: Private exchange organized by asset owner, powered by BANKEX
Use Case 7 Car sharing BUSINESS CASE Tokenizing underused cars, for instance during vacations CLIENT Unconfirmed Country: USA & Europe Asset: Future cash flows from car sharing Technology: IoT, movement & location sensors + payment wallet to spend tokens as loyalty currency for car sharing Token Economy: Tokens are backed by revenue from car sharing, 1 hour of car use = 1 token Escrow / Asset Manager: Reputable independent car sharing service providers, such as UBER Exchange: Exchange organized by asset managers (car sharing service providers) powered by BANKEX
Use Case 8 Crypto-SPAC (Special Purpose Acquisition Company) BUSINESS CASE Decrease cost and time to bring company to public financial markets while using blockchain to track ownership and production CLIENT Unconfirmed Country: USA Asset: Private company Technology: Private company shares crypto custodian; payment wallet to spend tokens as loyalty currency for company s products Token Economy: Tokens are backed by private shares + can be used as means of payment for company products Escrow / Asset Manager: Reputable third-party auditor such as BALANC3 Exchange: Public exchanges (NYSE, etc.)
Support products and services
BKX as Partner to Financial Institutions and Asset Managers CRYPTO-CUSTODIAN FIAT GATEWAY Custodian that holds crypto against fiat. Prospective Client: California-based provider for self-directed IRA administration services with $4B AUM. Self-Directed IRAs allow you to invest in alternative assets, such as real estate, gold and private placements LOW-COST MULTI-ORIGINATOR SECURITIZATION FOR PDL COMPANIES Securitization of PDL portfolios from several originators based on blockchain ledger and 3rd party scoring oracle. Enabling low-cost securitization due to standardizing product and saving money on trustee, underwriters, custodians, servicer and ranking agencies. Client: Russia-based Payday Loan companies, escrow provider leading cash-in terminal operator with over 100K terminals all over the country. Terminals are mostly used by underbanked people to pay their bills and top-up phones. DECENTRALIZED KYC Uber for financial representatives. 3rd party representatives singing papers and opening clients accounts on behalf of bank or other financial institutions. No branch visit is required. Clients: 8 banks in Russia, including 3 banks from TOP10 and 2 out of 3 TOP digital banks in the country. 400 cards delivered per day HEDGING CRYPTO AGAINST FIAT Hedging ETH value against USD through linked smart contracts, one of them for buyers, another for sellers. Capital-at-Risk is provided by community of sellers. Clients: BankEx clients who raise money for real-world projects from crypto-investors and businesses exposed to price risk of ETH.
BKX as Partner to Financial Institutions and Asset Managers SPAC FOR CRYPTO Structuring acquisition of crypto OTC assets through Special purpose acquisition companies (SPACs), and trading them as public securities at NYSE. Client: New York-based investment adviser and manager focused on private (mezzanine) debt.
How BKX Token Works and Appreciation Potential 1 BKX Token is the means of payment for BKX protocols usage: value split between product contributors, including solution providers, escrow providers, KYC providers, audit providers, clients originators (agents) etc. preliminary 10% of the total tokenization cost will be spent on BKX tokens to run contract (the average total cost of tokenization and placement is 5% of assets value) 2 BKX Token is backed by crypto-fund: 20 % of capital collected are dedicated to the fund if ICO > $30M; min 25% (in average 50%) of fund is held in liquid crypto-currencies, used for short-term market making purposes, to make permanent bid on the exchanges where BKX is traded; max 75% of fund is hold in the form tokens issued based on BKX (bought at pre-ico based on discounted pricing) UNSOLD TOKENS PROCEDURE Unsold tokens will be frozen for 1 year minimum - in the same ratio as at ICO. For instance 55m not sold, 100m get frozen - total pool of tokens goes down from 400m to 300m, total number tokens for sell goes down from 220m (55% out of 400m) to 165m (55% out of 300m). In 1 year or more tokens are get unfrozen, we can 55m at price of the current ICO closing, or more expensive.
How BKX Token Works and Appreciation Potential USE OF FUNDS $20M - IT-company $100M - decentralized financial platform run rate $7M per year licenses and legal (~10%) main products: capital reserve (min 20% - fund) crypto-exchange crypto-fiat custodian decentralized KYC go-to-market (acquisition, strategic investment - up to 20%) foundation (5%) R&D and soft development (30%) B2B business development and protocol Promotion (15%) LARGEST BUDGETARY OUTFLOWS 1. ~ $10m - legal engagement and licenses (we need 5-6 jurisdictions, for instance, legal cost of receiving NY crypto license, bitlicense - is about $1m). Will need to become a US broker / dealer to engage in certain trades / activities as a financial counter-party. 2. min $20m - capital to invest in assets issued at our exchange (on pre-ico); 3. max $20m - acquire local integrators to get access to financial institutions (for instance, medium integrator cost at developing market is $20m
BANKEX Roadmap Q1 2018 Initial Smart Asset Offering beta version based on the Ethereum blockchain is launched Underwriters inclusion to the product mining and working on interaction method within the Product Mining scheme Launch of cryptocurrency derivatives Architecture development for the smart asset storage Start working with local Regulatory authorities and Law Firms of licensing of offices in NYC and Moscow; BankEx Foundation opening Q2 2018 Creation of the universal consructor of renevable smart-cotracts Tokenization of 5 assetes using Proof-of-Asset protocol Token economics validation for assets Cooperation with local Law Firms in NYC and Moscow for corporate, tax, commercial and other necessary advices Be engaged in joint strategic partnership with local firm in the foreign market making cheaper entrance due to already existing brand recognition Establishing connections with partners and providing technical support with the Proof-Of-Asset protocol Q3 Q4 2018 Testing Proof-of-Asset Protocol platform. 1 Product Owners perform integration of Smart Assets in their countries on their own Development of asset backed BankEx Exchange Creating companies; broker-dealer registration, evaluation, risks, scoring, collection, in both NYC and Moscow Host a developer conference in Europe and retain current communications consultancy Development of the blockchain community in order to support the Proof-of-Asset protocol Launch of the Smart Asset Certification Center (SACC) Supplier Accreditation
BANKEX Roadmap 2019 Launch of standardized smart asset creation service; Expansion of the lineup of technological solutions for asset tokenization integrating IoT applications; Integration of the Proof-of-Asset protocol and banks Launch of Crypto-Fiat Depository 15 Product Owners perform integration of Smart Assets in their countries on their own Application Registry and Framework tutorials for developers BANKEX stock exchange for private placements/shares in pivately held companies
2017 BANKEX bankex.com