Presentation

LockTon

Crypto Bank

PRESENTATION

LOCKTON

18 min read

CRYPTOBANK

Cryptobank is a multi-blockchain platform that performs a number of banking functions.

The purpose of the platform is to introduce a service and payment infrastructure that will provide the necessary tools for working with crypto assets in accordance with all the requirements of the modern legal field and connect the crypto-currency sector with the financial one.

SoLution

LocktonBank allows customers:

store digital assets;
place deposits;
receive crypto-currency loans;
make card payments through an integrated fiat gateway.

In the future, integration of traded exchange products (crypto-ETP) is possible.

Functionality of the Lockton bank

01

Multizone storage;

02

Profitable deposit;

03

Liquidity pool for issuing derivatives:

Defi liquidity supply;

04

Staking deposit:

Staking pool;

05

Corporate payment service:

It helps organizations to carry out settlements in cryptocurrencies, filtering dirty assets (in integration with an AML provider), and clearing;

06

Instant micropayment service;

07

P2P Exchange Service:

crypto to crypto;
crypto to fiat;
fiat to crypto;

08

Issuance of Visa Card:

Automated crypto/fiat payments with standard spending limits.

Сurrent market challenges

Loss of funds

2017 - 2021
Total cryptocurrency value received by illicit addresses

Loss of funds

2011 - 2021
Stolen funds flow via entities

LoctonBank is custodial storage, with mandatory KYC/ AML procedures, provides the following:

SoLution

multi-signature features;
API for auditing and integration with third-party systems;
anchoring transactions in the public blockchain;
full customization embedded in the architecture of the platform.

This set of qualities provides almost unlimited opportunities to build varied financial products for any level of consumer.

Operational and human vulnerabilities

These risks are eliminated in tiered storage because of its architecture.

Solution

Users, by setting up accounts and according to their needs, distribute the conditions for storing assets.

“Hot zone”

request from the user account;

“Warm zone”

user request and additional confirmation with a key from the customer service department;

“Cold zone”

customer request, a customer service key, and a third party arbiter key;

Also, any user can assign additional security steps (for example, when placing especially large assets) - personal presence, additional signatures from trusted persons or organizations, etc.

All this in addition to standard KYC, 3D secure, withdrawal whitelists and other asset protection methods.

Low yield deposits

In the US today, the rate on deposits in a classic bank is about zero, in Switzerland the rates on deposits are negative.

SoLution

In the US today, the rate on deposits in a classic bank is about zero, in Switzerland the rates on deposits are negative.

Lack of insurance

The financial transaction sector requires envisaging any threats in the loss of user contributions, including unlikely.

SoLution

In addition to classic deposits, Lockton offers to stake assets based on the Proof-of-Stake protocol. Depending on the project, clients are awarded in percentages, and are possible to withdraw or keep accumulating interest.
Another tool is liquidity pool replenishment for DeFi projects. Clients’ capital is used to ensure the liquidity of the project which compensates for the period of funds placement.

Crypto lending

Traditional lending is associated with a large number of risks and costs for financial institutions.

SoLution

In crypto loans other crypto assets serve as credit security and they are automatically foreclosured

Responsible party denial of service

Access to private or corporate assets can be lost due to the death of the owner or holder of the keys. There are many such examples in modern history. The known case occurred with the QuadrigaCX — Canadian Exchange, when died Gerald Cotten the head of the company. So, access to digital assets valued at more than 75 thousand users was lost.

SoLution

Any client of Lockton Bank has the opportunity to draw up a contract for the transfer of a digital asset stored in the bank in the event of his death. In the event that the terms of the contract are fulfilled, after verifying the fact of death through a request to the competent authorities in the jurisdiction of the user, the bank activates the contract. The contents of the contract are only available to two parties, the originator and the new recipient.

Compliance with regulatory policies

Blocking the user's funds due to the possible unreliability of their origin.

SoLution

At Lockton Bank, the receipt of assets undergoes a preliminary AML check in cooperation with specialized providers (Chainanalysis, Elliptic, CipherTrace, Crystal Blockchain and etc.), which qualitatively reduces the likelihood of receiving a “dirty” asset. It is equally important to take into account the trustworthiness of the recipient when withdrawing assets.

Adoption

Investment banks, funds, international corporations are seriously considering blockchain-based projects in their portfolio due to the increasing acceptance of the technology by institutional market participants.

Big brand that accept crypto

Solution for corporate sector

What if the company wants to introduce work with cryptoactivities, keep records, passing an audit, make payments, translate payroll fund into crypto currency equivalent?

LocktonBank will provide conditions for the corporate sector, like any classic bank, including:

SoLution

01

Сorporate storage conditions of assets;

02

API for reporting and parsing, which will be used in audit

03

Inspection of assets during acceptance;

04

Automation of payout payments;

05

Corporate card issuance;

Payment of invoices and so on.

*(availability of services depends on the jurisdiction of the company)

Solution for traditional banks

What solutions Lockton provides for classical banks who want to introduce work with cryptoactivities?

The solution from LocktonBank is an affiliate program designed as a modular, interbank platform with a full range of cryptoactive services. Connecting to our system any bank will be able to provide a full range of services on its own behalf, becoming one of the regional partners.

Users

There is an opinion that people who have little understanding of crypto assets, but who want to acquire them, will first of all turn to the bank.

Retail users (individuals);
Investors using the bank as a repository of crypto assets and for working with the bank's deposit programs, DeFi, and other tools;
Corporate clients, to transfer fiat funds to crypto assets and vice versa to ensure operational activities (contracts, payments), build a company's payment structure, payroll programs, lending and depositing funds for a short and long period;
Sector of gambling and arbitrage - to build a single solution for multi-currency transactions, accept payments and service transactions;
ICO, ITO, Funds - to store liquidity and attract users to the product;
Emerging crypto exchanges - to gain access to the custodial storage of a part of assets in order to diversify risks;
Classical banks and financial organizations for the possibility of expanding their own functionality towards working with crypto assets and using the functionality of a crypto bank for their clients.

Advantages

Advantages of a crypto bank compared to a crypto exchange

01 High reliability:

More than 80% of assets are stored with cold mode (depends on the product fin);
A multi-level storage organization with multi- subscription administration requires collegial approval of large operations. The gradation distribution of funds from “cold” to “hot” allows you to balance the asset between ease of use and reliability of storage.

02 Wide availability for investment

The safest strategy of speculative trade in cryptoactivities is HODL (“Buy and Keep”);
For many users, the proposal of flexible (demanding) or fixed (urgent) deposits from cryptobank will be a clear and demanded financial product. Any crypto bank client can acquire and sell any crypto activities.

03 Range of payment services

For cryptobank, there is a phased integration of most modern payment services for customer retails with a fiat gateway for the use of VISA and payment systems for corporate clients, monitoring, checking and clearing crypto actives..

04 Scalability:

More reliable IT architecture compared to a crypto exchange;
A smaller pool for marketering, since the cryptobank does not require such a large liquidity to make speculative transactions, which means that it does not require the introduction and maintenance of services to ensure it.

Opportunities for launching in Ukraine

Among the key indicators for Ukraine are the following:

percentage of the population owning cryptoassets (top 1);
the total amount of profit received by crypto-investors (top 10);
number of blockchain developers (top 3).

In October 2021, the Verkhovna Rada of Ukraine considered the Law legalizing the cryptocurrency market in the country.

How many crypto owners in Ukraine?

It is estimated that over 5.5 million people, 12.7% of Ukraine’s total population, currently own cryptocurrency.

Ukraine – Global crypto hub?

Ukraine is ranked first worldwide for the adoption of cryptocurrencies. Ukraine sent $8.2 billion worth of cryptocurrency and received $8 billion worth from July 2019 to June 2020.

How do Ukrainians view crypto?

Ukrainians are very open to cryptocurrency, with Ukrainian crypto exchange Kuna reporting that small businesses might be turning around up to $5 million worth of crypto every week, while retail crypto trades total an estimated $800 thousend daily.
Ukraine is the birthplace to teams that founded crypto startups Bitfury, Hacken and Propy, not to mention numerous crypto developers. While many of these developers are now based abroad, the country is still a competitive jurisdiction for crypto startups, believes Alex Bornyakov, the deputy minister for digital transformation of Ukraine.

Why we start this project now?

The global adoption of the cryptocurrency sector and its regulation are coming.
So we can build a unifying infrastructure for a new market.
And we need to start now.

Team

CEO, CO-FOUNDER
Blockchain product specialist. Joule Power ICO representative. PO and BA at blockchain solutions. Financial and Legal advisor. Head of Buy-Side in Standart NV Investment banking. Financial advisor and investment consultant. COO in IntroPro software.

CO-FOUNDER, CSO
Strategy manager, system analyst in the public sector.

LEGAL ADVISOR, CO-FOUNDER
Fintech, Blockchain and Virtual Assets regulation specialist. Researcher. Counsel at Adcourt PhD in IT Law. Board of trustees Ziyo Forum Foundation.

Artem Veselov

Abbasov Adian

Alex Yakovenko

Akbar Abdusalyamov

CMO
Co-founder and Head of сommunications of World Influencers Network.

Financing

17.38%

[ ROI ]

[ IRR ]

$ 37 670 643

[ EBITDA ]

[ NPV ]

7,1%

$ 28 707 453

Capitalization at the end of the period at a market multiple of 10 for the last year of accounting

$ 186 839 941

934%

46

Growth of investments over the entire period of 4 years

Return on investment month

5.74%

[ PL ]

[ PP ]

3.90%

Estimated value of the investor's share

$ 46 709 985

Roadmap

1

Pre-Seed round

Development of a primary concept, market audit, preparation of presentation material, writing a project structure with a primary financial model, Preparation of technical specifications for a development team for a custodial storage, pre-feasibility study, Project market Fit. Also, a primary version of the design of the web version of the project was developed with the visualization of part of the functionality.

2

Seed round

Development of a complete set of financial, technical and legal documentation for the launch of the project: drawing up a complete TOR for the entire project, a business plan with a financial model that takes into account the expenditure and income for all project functions, a marketing plan for the development of Lockton Bank and the MVP of the software platform. (term 6-9 months).

The preliminary amount of funds raised is USD 750,000 through the sale of a 5% stake in the project.

*INFTO — Initial NFT Offering — is a unique, first-time fundraising model. Thanks to the use of NFT, it is possible to publicly sell a “tokenized share of the company” in compliance with all KYC/AML rules, labeling and personalization of the asset, which is especially important for financial organizations in modern conditions.

3

Round "A"

Development of a complete set of financial, technical and legal documentation for the launch of the project: drawing up a complete TOR for the entire project, a business plan with a financial model that takes into account the expenditure and income for all project functions, a marketing plan for the development of Lockton Bank and the MVP of the software platform. (term 6-9 months).

The amount of investment attracted is from
$ 5,000,000 by selling up to 20% of the project share.

4

Round «B»

Growth and expansion of the project in the market, expansion of the partner network and services, implementation of the marketing strategy. Attracting investments through INFTO*, carried out in four stages, secured by up to 40% of the share in the project (implemented in parts at the rate of 1.0 million USD per percent at the first stage).