Add a Cardano Native Tokens basket on the leading platform for crypto-index trading

[GENERAL] Name and surname of main applicant

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

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

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

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

Trakx will create a Cardano Native Asset index that bundles the crypto currencies of the leading Cardano projects and make it available to its growing retail and institutional client base.

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

[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.”

No dependencies.

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

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

Due to the proprietary nature of financial data and algorithms, this project will not be fully open source. However, we will provide relevant market information to ensure transparency.

[METADATA] SDG rating

SDG 8: Decent Work and Economic Growth

SDG 9: Industry, Innovation, and Infrastructure

[SOLUTION] Please describe your proposed solution

Trakx, operational for five years, is backed by influential business angels, BPI France, and Consensys. The company is regulated in France, offering exchange and custody services for both fiat-to-crypto and crypto-to-crypto transactions. With a robust board featuring former executives like the COO of MSCI and CEO of Lyxor, Trakx serves over 2,500 customers, including hedge funds, high-net-worth individuals, family offices, and asset managers. The team comprises 20 highly experienced professionals from top firms like Goldman Sachs and Bloomberg, and maintains partnerships with entities like Makor and MSCI.

Trakx will develop a Cardano Native Asset indexes that will consolidate the tokens of premier Cardano projects into a single index. These new financial product will be made available to both retail and institutional clients of Trakx, enhancing access to the top Cardano assets through a structured, investment-ready format.

How we perceive the problem:

Cardano Native Assets are largely absent from retail and investor platforms which impacts access and liquidity.

The Cardano ecosystem contains a variety of advanced projects, but the absence of structured, index-based financial products makes it difficult for investors to navigate and access the most relevant opportunities. Institutional investors, high-net-worth individuals, private bankers, and family offices often entirely miss Cardano projects due to the lack of structured financial instruments that they are familiar with.

Importance to Cardano:

This solution is crucial for Cardano because it significantly enhances its ecosystem's visibility and accessibility to larger pools of capital - ie Liquidity for the broader ecosystem. By offering diversified investment products, it will increase liquidity, attract new investors, and provide projects with a path to scalable growth. These indices will help ensure Cardano's projects are fairly represented and can thrive within the global investment landscape.

Reasons for our approach:

Trakx's approach focuses on creating thematic indices based on Cardano projects' market performance and relevance. By bundling these projects into curated indices, investors will have a more familiar and diversified vehicle to engage with the Cardano ecosystem. Our indices will be fully integrated into the Trakx trading platform to ensure seamless access, liquidity, and transparency, catering specifically to institutional and private investors.

Who will the project engage:

• Institutional Investors: They will gain structured, index-based access to Cardano, enabling large-scale, strategic investments.

• High-Net-Worth Individuals and Family Offices: They will find tailored investment products that simplify Cardano exposure.

• Private Bankers and Money Managers: The thematic indices will provide diverse and strategic Cardano investment opportunities for their clients.

• Cardano Projects: These will gain significant visibility and credibility through inclusion in the indices, attracting further investment.

Demonstrating Impact:

The project will demonstrate impact through clear and measurable key performance indicators:

• Investment Volume: Monitoring the amount of capital flowing into each index.
• Market Valuation Growth: Comparing the market capitalization growth of indexed projects against non-indexed projects.
• Ecosystem Involvement: Tracking the number of new projects applying for index inclusion.

Unique Aspects of Our Solution:

• Tailored Access: By developing thematic indices based on Cardano projects, Trakx will provide tailored access to a broader range of investors, reducing their learning curve.
• Integrated Platform: Seamless integration with the Trakx platform ensures liquidity, accessibility, and efficient rebalancing of the indices.
• Investor Confidence: Adhering to strict regulatory standards and providing detailed market analysis will reinforce investor confidence.
• Significant Visibility: Index inclusion offers significant visibility and credibility for Cardano projects, attracting new investors and fostering growth.

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

Increased Ecosytem Liquidity:

Thematic indices will aggregate top-performing projects, offering accessible and diversified entry points for institutional and private investors. This approach increases liquidity across the Cardano ecosystem while providing exposure for projects that would otherwise struggle to attract significant investment.

Market Awareness:

By serving as a benchmark for new investors, these indices will raise awareness and credibility for Cardano projects and the Cardano brand. They will showcase the ecosystem's innovation and potential, drawing interest from a diverse investor base, including those unfamiliar with cryptocurrency who have only heard of Cardano but may not know how to access, trade, or stake it. 

Access to four investor segments Carano struggles to attract: 

Non-Crypto Savvy Investors and Financial Institution, /High Net Worth and Family Offices which constitute the bedrock of Trakx’s clientele. With its custom indicesTRakx offers a familiar investment product for those who seek exposure to digital assets but are uncertain how to engage directly with cryptocurrencies.Trakx will effectively act as a de-facto marketing and immediate on-boarding to a range of customers that would be otherwise hard to reach and sell to.

Impact Measurement: To quantify the impact of these thematic indices, Trakx will monitor:

• Investment Volume: Track capital inflow into each index, reflecting investor engagement and financial interest.
• Market Valuation Growth: Monitor the market capitalization growth of indexed projects versus non-indexed projects to gauge the financial impact.
• Ecosystem Involvement: Track the number of new projects applying for index inclusion to measure growth.

Sharing Outputs and Opportunities:

• Reports: performance reports will include analytics, assessments, and strategic updates, 
• Community Engagement: Webinars and Q&A sessions will discuss performance, initiatives, and gather community feedback.
• Collaborative Development: Work with Cardano projects to identify new opportunities and foster shared growth.
• Educational Content: Educating our clients is an inherent part of our work to highlight index investment benefits and attract new investors.

[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?

Expert Team and Proven Track Record:

Trakx is led by a team of experienced professionals who have substantial backgrounds in traditional finance and the digital asset space. Our leadership, such as Lionel Rebibo, has been at the forefront of financial innovation since 2004, guiding Trakx to become a pioneer in crypto-index trading. Our senior tech team is well-versed in developing secure, scalable financial platforms, ensuring technical robustness.

Regulatory Compliance:

Trakx operates under strict compliance with the Autorité des Marchés Financiers (AMF) in France. We are registered to offer exchange services between fiat and crypto, and crypto-to-crypto transactions. This regulatory backing ensures that all operations are transparent and adhere to high standards of financial conduct, providing a trustworthy foundation for managing investment funds.

Robust Financial Management Processes:

• Secure Asset Custody: Trakx employs leading crypto custodians to ensure that assets are held securely, following industry-best practices. This minimizes the risk associated with asset theft or loss.
• Stringent KYC and AML Policies: We adhere to strict Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines, ensuring all clients are rigorously vetted before accessing our services. This not only complies with regulatory requirements but also secures the platform from fraudulent activities.
• Transparent Financial Reporting: Trakx maintains transparency by publishing intra-day Net Asset Values (NAVs) and token holdings, providing real-time financial insights to investors. This level of transparency is crucial for trust and accountability in fund management.
• Segregation of Duties: Financial duties are segregated among different team members to prevent fraud and ensure accountability. Regular internal audits are conducted to ensure that every financial transaction is authorized and recorded correctly.
• Technology-Led Security and Efficiency: Our platform leverages advanced technology for both security and operational efficiency. Automated trading bots provide liquidity and execute trades with precision, reducing human error and ensuring that investment strategies are carried out effectively. The use of proprietary index management tools allows for dynamic rebalancing of indices based on predetermined rules, ensuring responsiveness to market changes.

Steps to Ensure Fund Management Integrity:

Regular Internal and External Audits: We conduct regular audits to ensure compliance with financial management standards and regulatory requirements.

Dedicated Compliance Team: A dedicated team oversees all transactions, ensuring they meet legal standards and internal guidelines.

Investor Reporting and Communication: Regular updates on fund performance and operational decisions are communicated to investors, ensuring transparency and fostering trust.

By combining regulatory compliance, advanced technology, and a commitment to transparency and security, Trakx is well-positioned to manage funds properly and deliver this project successfully.

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

Milestone 1: Backend Index Infrastructure Development (Month 1)

Output: Complete backend integration, ensuring index calculation, rebalancing, and reporting.

Acceptance Criteria: Perform simulated data testing to confirm platform stability and reliability.

Milestone 2: Regulatory Compliance and Setup (Month 2)

Output: Secure necessary regulatory approvals, establish compliance protocols, and refine internal processes.

Acceptance Criteria: Confirm compliance with regulatory standards and finalize the required approvals.

Milestone 3: Platform Integration and Launch (Month 3)

Acceptance Criteria: Indices are successfully integrated and accessible to Trakx clients, with initial investment targets achieved.

Final Milestone: Final Report and Video

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

Lionel Rebibo (CEO, Co-Founder): With extensive experience in hedge funds, he is the project lead responsible for overall strategy and execution, focusing on bridging traditional and digital finance.

Laurent Barocas (Chief Client Officer): A 20-year veteran from Bloomberg, he coordinates relationships with institutional clients, ensuring they receive tailored financial services.

Alexander Jansen (Global Head of Sales): Previously at BNP and Goldman Sachs, he leads global sales and strategic partnerships, driving growth and market penetration.

Yann Le Floch (Digital Money Banker): As an expert in digital banking, he manages relationships with private banking clients, providing personalized investment solutions.

Sacha Windisch: Advisor and business development. Former Partnerships Manager at Cardano Foundation

Riz Pabani: Advisor and Business Development. Former Partnerships Manager at Cardano Foundation

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

Milestone 1: Backend Index Infrastructure Development and Integration - 30,000 ADA

• Project Management: 40 hours @ 100 ADA/hour
• Development: 120 hours @ 150 ADA/hour
• Integration Testing: 80 hours @ 120 ADA/hour
• Subtotal: 30,000 ADA

Milestone 2: Regulatory Compliance and Approval Setup - 20,000 ADA

• Legal Consultation: 60 hours @ 200 ADA/hour (including research and documentation for compliance)
• Regulatory Filing and Liaison: 40 hours @ 150 ADA/hour
• Subtotal: 20,000 ADA

Milestone 3: Platform Integration and Marketing Campaign - 40,000 ADA

• Technical Integration: 100 hours @ 150 ADA/hour
• Marketing Strategy Development: 50 hours @ 120 ADA/hour
• Campaign Execution and Management: 80 hours @ 125 ADA/hour
• Subtotal: 40,000 ADA

Final Milestone: Final Report and Video - 10,000 ADA

• Report Writing: 30 hours @ 150 ADA/hour
• Video Production: 40 hours @ 125 ADA/hour
• Editing and Finalization: 20 hours @ 125 ADA/hour
• Subtotal: 10,000 ADA

Tentative budget

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

The infrastructure Trakx has already developed provides a leap forward for the Cardano ecosystem, enabling the entire community to leverage it for their benefit. This project will act as a catalyst for institutional adoption and increased liquidity, leading to broader Cardano adoption. By minimizing costs and efficiently using pre-built resources, the thematic indices will provide ADA holders, pool operators, and developers with a transparent, diversified financial tool that fosters growth and sustainability while attracting institutional investors to Cardano's innovative ecosystem.