finest Investments Tokenization Launchpad V.2 by NMKR, Fluid and IAMX: BaFin-compliant Compartment for Access to Capital Markets for Cardano projects

[GENERAL] Name and surname of main applicant

Tim Heidfeld

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Co proposers and Additional applicants

Daniel Maier

https://chartered-investment.com/

https://www.linkedin.com/in/daniel-maier-a708a253/

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

3

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Summarise your solution to the problem (200-character limit including spaces)

Enable funding for Cardano projects and other products through electronic securities in a legally compliant manner, using compartment solutions to meet regulatory standards and manage risks.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

The success of the project depends on contractual relationships with the following partners: Crypto registry leader, Crypto custody, Liability umbrella investment brokerage, Security Agent, CSSF-regulated securitisation company.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs.

Our commitment to making our project fully open-source means dealing with significant legal complexities. We aim to maximize the open-source aspects of our project, but the complex legal environment around permissions, licenses, and intellectual property rights means we can't fully guarantee this. Legal restrictions might prevent us from open-sourcing some components, but we remain dedicated to embracing open-source principles as broadly as possible.

[SOLUTION] Please describe your proposed solution.

Our solution aims to facilitate the funding of Cardano projects and other related products through the issuance of electronic securities in a legally compliant manner. We plan to employ compartment solutions, which are specially structured to adhere to stringent regulatory standards and enhance risk management. This approach will ensure that each segment of investment is clearly defined, isolated from risks associated with other investments, and compliant with legal requirements.

The successful implementation of our solution hinges on establishing and maintaining robust contractual relationships with several critical partners:

• Crypto Registry Leader: To manage the registration and tracking of digital assets securely.
• Crypto Custody: To provide secure storage and management of digital assets.
• Liability Umbrella Investment Brokerage: To oversee investment activities and ensure compliance with financial regulations.
• Security Agent: To handle the enforcement and protection of the security interests of all parties involved.
• CSSF-Regulated Securitization Company: To structure and manage the securitization compartments in accordance with Luxembourg's financial regulations.

Advantages and Benefits for Stakeholders

a) Compartment via CSSF-Regulated Securitization Company:

• Risk Isolation: Each compartment functions independently, which isolates and contains risks, protecting investors and the project itself from cross-contamination of financial issues.
• Regulatory Compliance:** Adherence to CSSF regulations ensures high standards of transparency and investor protection, aligning with European financial laws.

b) BaFin Compliance:

• Market Confidence: Compliance with BaFin standards (the German financial regulatory authority) reassures investors of the project’s legitimacy and stability, fostering trust and encouraging investment.

c) Prospectus Passport Rule to Sell in Complete EU

• Broader Market Access: Utilizing the prospectus passport rule allows the securities to be marketed across the entire European Union, significantly widening the potential investor base and enhancing liquidity.

d) Use of Partners:

• Crypto Registry Leader and Crypto Custody: These partners ensure that all digital assets are accurately registered and securely managed, enhancing the integrity and appeal of the investment.
• Liability Umbrella Investment Brokerage and Security Agent: These roles are crucial for managing legal risks and protecting the rights and assets of investors, thereby increasing the attractiveness of the investment.

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

Our project focused on providing funding opportunities for Cardano projects through electronic securities will have a transformative impact on the wider Cardano community. This initiative will support the ecosystem's growth by offering a compliant, efficient, and secure funding mechanism, paving the way for substantial development within and beyond the Cardano community.

Enable funding opportunities for Cardano Projects: By leveraging compartment solutions that meet regulatory standards, the project facilitates a safer and more effective risk management process. This allows Cardano projects to access funding through electronic securities that adhere to strict regulatory frameworks, thus opening up a new avenue for project financing.

Drive Ecosystem Growth: The introduction of this compliant funding mechanism supports the growth of the Cardano ecosystem by enabling more projects to flourish. It provides the necessary capital for innovative developments, which, in turn, contributes to the overall expansion and maturation of the ecosystem.

Expand Cardano’s Global Footprint: By facilitating investments compliant with international regulatory standards, the project positions Cardano as a globally respected and recognized blockchain platform, capable of attracting international projects and investors.

Onboard More Cardano Users: The project serves as a gateway for new users and investors to enter the Cardano ecosystem, attracted by the secure and regulated investment opportunities.

Partnership with a Tier 1 Partner, Chartered Investment: Collaborating with a recognized financial institution like Chartered Investment enhances the project's credibility and provides access to expert financial guidance and a wider network of potential investors.

This strategic initiative is poised to significantly enhance the utility, reach, and community engagement of Cardano, driving forward its mission to revolutionize the blockchain sector.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

What is your capability to deliver your project with high levels of trust and accountability?

Chartered Investment:

Chartered Investment is a distinguished financial institution known for its expertise in asset management and investment services. Based in Germany, the company offers a broad range of financial products and solutions tailored to meet the needs of both private and institutional investors.

Key Highlights of Chartered Investment:

• Diverse Offerings: Chartered Investment specializes in providing asset management, trading, and investment solutions. Their services cater to a variety of financial needs, including strategic investments, wealth management, and personalized financial planning.
• Expertise: With a team of seasoned financial experts, the company leverages deep market knowledge and extensive experience to guide investment strategies. Their expertise ensures that both the risks and opportunities of each investment are carefully balanced to meet the specific objectives of their clients.
• Regulatory Compliance: Operating within Germany's strict financial regulatory framework, Chartered Investment adheres to the highest standards of compliance and integrity. This commitment to regulatory standards instills confidence among clients and stakeholders, underscoring the company’s dedication to ethical financial practices.

Chartered Investment in numbers:

100+ B2B clients served

1000+ Completed transactions and index solutions

500+ Mio. USD funded venture capital

200+ Exchange listings

5.0+ bn USD securitised assets

50+ Employees

NMKR [https://www.nmkr.io/]

NMKR is a leading platform for NFT creation and management, offering tools that enable users to mint, sell, and manage NFTs with ease. Supporting multiple blockchains, NMKR simplifies the NFT experience for creators and businesses, enhancing accessibility and innovation in the digital asset space. The most powerful tool to create & manage every aspect of your NFT or Tokenization project. We provide you with the plug-and-play tools to make your NFT or Real-World-Asset Tokenization project a success.

FluidTokens [DeFi https://fluidtokens.com/]

FluidTokens kicked off its journey on the Cardano blockchain as a DeFi platform, presenting a diverse range of services like lending, borrowing, staking, and an array of other inventive products including rental options, boosted stake features, and more. Revolutionizing permissionless DeFi with eutxo chains.

IAMX [Digital Identity https://iamx.id/]

IAMX operates a cutting-edge platform for creating user-owned, controlled, and verifiable compliant digital identities for individuals, companies, and assets. This digital identity framework facilitates compliant mutual authentication, business process automation, and biometric authorization.

IAMX compliance service modules per partner:

1. AML (Anti-Money Laundering): Provided by Intrum AG, which employs 10,000 staff across 160 offices globally, helping to mitigate money laundering risk
2. Identity Verification: Handled by IDnow via Intrum, conducting over 30 million identity verifications annually across 195 countrie
3. KYT (Know Your Transaction) Wallet and Transaction Monitoring: Merkle Science enhances crypto compliance, anti-money laundering, and fraud prevention through innovative technology, tools, and services that ensure safety and regulatory compliance in the cryptocurrency spher

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: Partnership Agreement with Chartered Investment

Output:

• Formalize a partnership through an agreement with Chartered Investment for financial compartment operations.

Acceptance Criteria:

• Completion and signing of the partnership agreement with Chartered Investment.

Evidence of Milestone Completion:

• A redacted copy of the signed agreement ensuring confidentiality.

Milestone 2: Structuring and Documentation for Tokenization

Output:

• Complete the structuring and documentation for the tokenization of an electronic security, including asset definition, security design, and the creation of an offering document and securities information sheet.

Acceptance Criteria:

• Detailed documentation of the security structure, asset details, design parameters, and finalized securities information sheet.

Evidence of Milestone Completion:

• Redacted scans of all relevant structuring and documentation materials.

Milestone 3: Preparation of Compartment Documentation and Asset Segregation

Output:

• Prepare all necessary documentation and procedures for the company formation of a securitization company, including compartment structure, regulatory compliance, and asset segregation.

Acceptance Criteria:

• Complete documentation covering company formation, compartment structuring, regulatory approvals, and the segregation of assets.

Evidence of Milestone Completion:

• Redacted scans of complete compartment and asset management documentation.

Milestone 4: Technical Integration with Chartered Investment and Partners

Output:

• Implement technical integration between Finest and the endpoints of Chartered Investment and other involved partners, including necessary APIs.

Acceptance Criteria:

• Successful documentation and implementation of technical integrations and API functionalities.

Evidence of Milestone Completion:

• Video documentation of the integration process and a technical report detailing the integration steps.

Milestone 5: Review and Testing

Output:

• Conduct a comprehensive review and dry run of the processes established in Milestones 1-4 to ensure full functionality and integration.

Acceptance Criteria:

• Successful test results and documentation verifying the functionality and integration of all systems up to this point.

Evidence of Milestone Completion:

• Video and technical report documenting the review and testing process, confirming functionality.

Final Milestone: Issuance of Electronic Securities

Output:

• Official issuance of electronic securities under BaFin regulations using the compartment structure.

Acceptance Criteria:

• Complete documentation of the issuance process and compliance with BaFin regulations.

Evidence of Milestone Completion:

• Video and technical report detailing the issuance process and confirming regulatory compliance.

[RESOURCES] Who is in the project team and what are their roles?

Persons

Dennis Mittmann

CTO IAMX https://iamx.id

https://www.linkedin.com/in/dennis-mittmann/

Tim Brückmann

CMO IAMX IAMX https://iamx.id

GF at finest Investments GmbH

https://www.linkedin.com/in/tim-b-7864a284/

Tim Heidfeld

CEO IAMX https://iamx.id

https://www.linkedin.com/in/tim-heidfeld/

Daniel Maier

CEO Chartered Investment

https://chartered-investment.com/

https://www.linkedin.com/in/daniel-maier-a708a253/

Matteo Coppola

CEO at FluidTokens.com

GF at finest Investments GmbH

https://www.linkedin.com/in/matteo-coppola-mazzetti/

Raul Rosa

CTO at FluidTokens.com

https://www.linkedin.com/in/raul-antonio-rosa-padilla/

Patrick Tobler

CEO & Founder NMKR

https://www.linkedin.com/in/patrick-tobler-6593b912b/

Roles

Chartered Investment and Departmental Coordination

Daniel, representing Chartered Investment, is the primary liaison for all related business departments. His responsibilities ensure cohesive integration and coordination across various sectors of the project.

finest Investments

Tim Brückmann and Matteo Coppola are responsible for the overall solution.

IT and Integration

Raul is responsible for the IT integration in all aspects of the project. 

Marketing and Legal Oversight

Patrick Tobler leads the marketing efforts, crafting strategies that effectively communicate the project's value and innovation.

Legal, financial terms

Legal matters, data protection, financials terms are overseen by Tim Heidfeld from IAMX, ensuring compliance throughout the project lifecycle.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

IT Development

The IT development segment of our project involves critical components such as onboarding, data handling, data security API´s to all partners, .test- and productive environment

To achieve these objectives, we will engage three senior developers, project management, product owner, over a period of 5.5 months.

Total Cost: 530,000 ADA

Design and Layout

This portion of the budget covers the design, layout, and output formats essential for the application's user interface and user experience components. Effective design is crucial for ensuring that the application is accessible, intuitive, and user-friendly.

Total Cost: 30,000 ADA

Legal Analysis and Agreements

Legal integrity is paramount in projects that handle identity verification and access control to ensure compliance with data protection regulations and to secure intellectual property rights. This budget allocation will cover all necessary legal analysis and the drafting of agreements and preparation of templates.

Total Cost: 170,000 ADA

Publicity, Community Engagement, and Project Management

To ensure the project reaches a wide audience and engages effectively with the community, funds are allocated for publicity and community engagement activities. Additionally, this allocation covers the overall project management, documentation, and reporting to keep stakeholders informed and involved throughout the project lifecycle.

Total Cost: 40,000 ADA

Total Project Budget: 770,000 ADA

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The cost of the project, totaling 770,000 ADA, represents significant value for money for the Cardano ecosystem by facilitating the structured and secure introduction of electronic securities. Here’s how each component of the budget contributes to this value:

IT Development (530,000 ADA): The allocation towards IT development covers critical components such as onboarding, data handling, and securing APIs, which are fundamental for integrating and operationalizing the electronic securities system. This investment ensures robust system architecture that not only enhances the functionality of Cardano-based projects but also increases the blockchain's appeal as a secure and reliable platform for financial applications.

Design and Layout (30,000 ADA): Investing in the design and layout of the application improves user interaction, making it more accessible and user-friendly. This not only helps in attracting a broader user base but also aids in retaining them by providing a seamless experience, thus increasing the adoption rate of Cardano-based applications.

Legal Analysis and Agreements (170,000 ADA): This crucial investment ensures that all activities are compliant with existing regulations, providing legal integrity and security. This compliance is vital for building trust among users and investors and for preventing potential legal challenges that could hinder the growth of the Cardano ecosystem.

Publicity, Community Engagement, and Project Management (40,000 ADA): By allocating funds towards community engagement and project management, the project ensures effective communication and stakeholder involvement, which are essential for the successful adoption and implementation of the new system. This also helps in fostering a positive image and promoting widespread acceptance of Cardano’s capabilities within and beyond the crypto community.

Through these investments, the project not only supports the immediate needs of developing a compliant and efficient electronic securities platform but also contributes to the long-term sustainability and expansion of the Cardano ecosystem. This approach ensures that funds are utilized in a manner that maximizes both immediate impacts and enduring benefits, promoting broader economic activities and innovation within the Cardano network.