The Artus Bank Project: Pioneering the Future of Banking
To create the world's first fully blockchain/crypto-integrated hybrid bank with a new generation core banking system.
The Goal
To create the first global hybrid bank that will operate with the most advanced/new generation core banking system that has just recently become available.
This core banking system brings fully integrated blockchain/cryptocurrency capabilities while also providing opportunities for services, features and products that current banks simply cannot deliver.
Moreover, with this technology and infrastructure, a full range of traditional FIAT/banking services, as well as new digital products (cryptocurrencies, tokenisation), can be made available to customers.
This well-underway project is currently unique in the world.
Why Now
The first such core banking system compliant with FINMA/Swiss regulation is ready for operation now and waiting to be implemented / rolled out for a Swiss bank.
The ABC's
Why do it? Because the current market disruption and new technology available offer a unique opportunity for technological leadership with maximum cost control, mitigated risk, and an immense upside.
1
We have the pole position and competitive advantage:
A new generation core banking system has just become available, offering an immense competitive advantage. Given the difficulties current banks have in migrating to such a system, this competitive advantage is rock solid. This technology is the key to being able to play a leading role in an evolving trillion USD market. A quick market adoption can be expected, as the technology now exists and the demand has already been established—waiting only for the implementation and offer.
2
Very high probability to be very profitable—high probability to be extremely profitable:
Such a bank, once operational, will have an ROI that has been assessed by a top auditor to be worth 4–6 times the cost and equity invested in creating this bank, while still maintaining the preserved equity investment value. In addition, the assessment does not yet even take into account the new generation IT system and the associated business opportunities.
3
We can still tailor to specific needs:
In the set-up & implementation phase of this next-generation core banking system, it is easy to offer bespoke services and products to our shareholders and clients to address their specific needs for the development and growth of their businesses. In turn, via word of mouth, this flexibility will serve as a springboard to identifying businesses or partners with unsatisfied demands, thus fostering a climate of new business possibilities for all concerned.
4
The “bad” case is still very good, as we create solid value:
The “worst case” is a Swiss bank that has been created at the lowest possible cost in a short timeframe that has both no legacy issues and cutting-edge technology. The value created by all definitions must be greater than the investment made. We have an implementation partner, which we are very confident can carry the project to fruition at much lower cost than anyone else in the market, and we have already made all necessary preparations, including a tested budget and the securing of all critical suppliers. For 4 Possible Valuation Methods, Please See Financials Below.
5
Best possible offer:
We offer stakes at the “lowest possible cost with a slight plus," even taking into account our advanced, solid states of preparation and planning reached. Why we do this? Because your participation, contacts network, and global business vision will make this bank more valuable than what giving away participation under these terms “costs” us.
6
Best Offer
Best possible offer: We offer stakes at the “lowest possible cost with a slight plus," even taking into account our advanced, solid states of preparation and planning reached. Why we do this? Because your participation, contacts network, and global business vision will make this bank more valuable than what giving away participation under these terms “costs” us.
What We Offer
Join this dynamic group and become one of 5 shareholders of this new bank. Bring your experience and competence, your contacts and network, and your vision. Together the synergy is magnificent.
A New Market is Evolving
A trillion USD market in need of “banking services” is evolving, but it can only be served efficiently and effectively with a new generation core-banking system:
Trade Finance on Blockchain
As of today, TF still consists of the manual check and comparison of required documents, tasks which can be easily standardised on a Blockchain and processed automatically.
Asset Tokenisation
Tokenisation enables assets (ships, planes, cars, etc.) to be easily broken down into smaller ownership units, thus encouraging the democratisation of investment in historically illiquid assets and bringing about fairer markets and new opportunities.
Crypto Accounts & Trading
Many clients still rely on the services of “dubious” providers and are not offered the full range of services due to these providers’ lack of a banking licence. There are currently 1.4 billion unbanked people in the world. A wallet and access to Crypto in the regulated environment of a Swiss Bank can and will help to correct this anomaly. New technologies are simplifying onboarding and compliance checks.
B2B Services for FinTechs and Banks
Many FinTechs provide ground-breaking technological solutions, though they fail to provide clients with full functionality due to their lack of a banking licence. The majority of FinTechs rely separately on services of 3rd party banks, which are not sufficiently fit technologically. In this case, our bank will be compatible with many FinTechs. Banks not having the technological or regulatory capacity to offer certain products and services can outsource such to the bank we create.
NFT’s
Through NFT’s, the metaverse is blending with the physical world. After “Art”, other industries to be disrupted by NFT’s are Gaming and Real Estate. The metaverse is being shaped by technology as well.
The first land registers start to register real estate on the blockchain as NFTs. Other registered assets (ships, planes, cars, etc.) can easily follow, and all these can be instantly traded in the multiple of any ownership fraction.
Implementation
As part of our implementation plan, we gave our lawyers a mandate to plan and implement this project on a one-stop-shop/turnkey-ready basis some months ago. They are the only consulting firm in Switzerland offering such a competitive team, service, and approach. Their level of experience and competence has proven capable of delivering this project both on time and within budget. The cost savings good project management brings enable the low cost of this project.
Why Switzerland:
- The FINMA has adopted a “technologically-agnostic” position, allowing for the blockchain to be used and for crypto to be processed, assuming that all compliance requirements are fulfilled.
- Swiss banks are universally accepted counterparties for all other banks.
- Banking, blockchain, and crypto know-how is vastly available in Switzerland, and foreign, on-site experts, if required, are definitely willing to relocate to Switzerland.
- The system provider is very eager to implement the new generation core banking system in Switzerland, both for the prestigious quality statement the implementation implies as well as for the media attention it will generate.
Some Facts & Figures
Project Cost:
CHF 20.5 million (from inception until the entry of the bank into commercial registry) to be spent on IT (main cost), rent, staff, consulting, outfitting, legal, project management, FINMA, Audit, etc. All resulting reductions of the budget will flow into the equity of the newly created bank.
FINMA Base Case Cash Flow and Evaluation
1
Business Plan
One significant part of the application is the business plan of the bank. The FINMA does not yet wish to see the bank’s profitability depend on any Crypto volumes. We thus have to present what we refer to as a “Plain Vanilla” case, which the auditor and FINMA will check for probability and consistency and will approve. Over the last 7 years, our legal partners has presented to PWC (auditor of previous applications) and the FINMA 3 business plans with very similar basis. Especially all the cost side of the bank is very solid, which is one of the critical quality markers of the application.
2
Break-Even
Furthermore, the FINMA, as per our inside experience, does not accept “hockey-stick” business plans. This is why, despite all the potential identified, we will present a business plan with break-even between years 2 and 3.
Projected Financials
Equity
CHF 40 million. to be payable only after the licence has been granted but documented at filing of the application.
Participation:
Each patron / shareholder (for a 10% stake as example) will commit to pay-in:
I. CHF 5 million. at the start of the project.
The funds will be deposited in an escrow account and freed only according to the pre-agreed budget already available. The Artus Project team has committed to obtaining the banking licence and have all structures required for such a build-up in place with this sum.
II. CHF 10 million . as equity of the bank—to be credibly demonstrated at the start of the project and paid in only after the FINMA has granted the licence.
Duration: 12-Month Timeline
Maximum 12-18-month lead time from the submission of the application to the granting of the banking licence. Filing is expected in Q1 2025, provided all investors are on board. We will file for the licence application once the most relevant criteria from the initiators and application 80% of the shareholders have been identified and documented. Following the granting of the licence, the process of entry in the Swiss Commercial Register will take approximately 5 weeks and only then we are officially a bank and ready to open the doors for business.
1
Q1 2025
Identify and Commit Shareholders to get process started.
2
Q1/2 2025
File Application for FINMA Licence
3
End Q4 2025
Q1/2026
Provisional Licence approval from FINMA
4
End Q1/2026 Post-License
Entry in the Swiss Commercial Register & Launch
Project Location
Zurich city centre or Zug. To save costs and increase efficiency, the project office will be located at The Artus Bank Project in Zurich city centre for approximately the first 5 months.
Full-Time Employees (FTEs)
An initial core team of 7-8 will be built up asap. The full staffing of approximately 23 will be reached immediately after the license/t is granted. We expect some staff to be hired throughout the duration of the project phase to allow for training and cooperation in the development of required infrastructure, preparation for operations, and fulfilment of FINMA requirements of level of readiness prior to the licence being granted. Soon after entry into the commercial registry, some 4–7 FTEs will be added.
1
Initial Team
An initial core team of 7-8 will be built up as soon as possible.
2
Full Staffing
The full staffing of approximately 23 will be reached immediately after the license is granted.
3
Ongoing Hiring
We expect some staff to be hired throughout the duration of the project phase to allow for training and cooperation in the development of required infrastructure, preparation for operations, and fulfilment of FINMA requirements of level of readiness prior to the license being granted.
4
Post-License
Soon after entry into the commercial registry, some 4–7 FTEs will be added.
Business Plan
This new market we are breaking into is of such magnitude and is evolving so quickly that capturing even only a 0.1% market share could yield a bank valuation of several billion USD. The drawing up of a BP trying to reflect these figures is futile.
However, given it is a central part of the application, we will still have to present a very solid BP to the FINMA. The FINMA certainly expects such a business plan to show profitability, even without considering any “Crypto/Blockchain” business. As such, we have prepared a BP based upon our basic template, which has already been audited by PWC on multiple occasions and that the FINMA deemed solid. As the bank we are creating has no legacy and thus a clean and flawless reporting system can very easily set up, we have added to this BP the desired target client group of “US clients”. Swiss banks, having sinned in the past and averse to the risk of not reporting correctly due to the complexity of the required onboarding documentation, generally do not accept US clients. For us, the set up of a reporting structure that is compliant with US requirements will be very easy, as we can set up such a greenfield. There are more than 80’000 “US” clients (US passport, previous US greencard, etc.) living in Switzerland, and many of them are in great need of being onboarded by a Swiss bank. The FINMA, as well as the US Embassy, are very much in favour of the presentation of such a BP, which shall be the “plain vanilla” BP, showing break-even in year 3 (again, the conservative plan is based upon only a tiny little fraction of the bank’s potential).
Artus Bank Project: Team Composition
Shareholders
Each shareholder must provide a certain documented level of wealth as well as accompanying compliance documentation (passport, CV, criminal record, source of wealth, etc.) for acceptance by the FINMA.
FINMA does not require shareholders to have any knowledge or prior banking experience. Some nationalities / domiciles are not acceptable. The Artus Bank Project Legal Team will consult and provide support on these matters.
Board of Directors
The Board of Directors of the new bank shall consist of app. 5 persons who must, as a group, have the competence and capacity to supervise the activities of the bank management. A shareholder will not have the right per se to be a member of the board, as that would make the complement of the board disproportionally large.
Management
The new Bank Management will consist of experts in their respective fields. The FINMA must approve each member of management. For such a project, we will have no difficulties identifying and hiring highly qualified individuals. Shareholders are welcome to present candidates. The candidates need not be Swiss.
Note
However, this is changing, such as the "crypto-friendly" bank SYGNUM, which went live in 2019 and is currently being valued with a market value (post-money) of almost CHF 800 million via another round of new capital. SEBA and SIGNUM were the first two Swiss banks with a "crypto" focus as pure DLT (digital ledger technology) banks. However, both have the misfortune of having been "too early," and both have implemented systems that are outdated. Thus, these two banks are a proof of concept without being able to compete on the same technological level.
Status
The Artus Bank Project has supported one of the leading IT service providers in creating this new core banking system to make it “Swiss Ready” and “crypto enabled—fully integrated," both from a functional and regulatory perspective. The cooperation with this provider has been ongoing since 2015, and all services have been agreed upon and secured.
The application, a 4’500-page FINMA application, and the corresponding basic business plan on which the application is based have already been prepared by The Artus Bank Project and are app. 85% completed. The budget has been elaborated, critical cost positions are already secured and negotiated, the project timeline is planned, and the corresponding 40 necessary suppliers have been identified and pre-selected.
The application has been intentionally kept “simple” as a means of obtaining a banking licence in the most efficient manner, given that an already granted licence can be expanded to include further services or products at any time in the future.
The name and logo used herein are for project purposes only and may not be used for the actual bank to be created.
Addressing Investor Concerns
We understand that investors may have concerns regarding the execution, market adoption, regulatory compliance, and competition. These are valid points, and we have developed detailed strategies to address each one. While this document serves as a high-level overview, we have a comprehensive business plan that provides in-depth solutions to these challenges.
- Execution: Our experienced team has the expertise necessary to integrate complex technologies with traditional banking operations, ensuring smooth execution and operational excellence.
- Market Adoption: We are acutely aware of the challenges associated with market adoption of new technologies. Our marketing and education strategies are designed to ensure that our services meet the needs of both traditional and tech-savvy clients.
- Regulatory Compliance: Compliance is at the core of our business model. We have set the internal functions and procedures up to meet or excel requirements of the Swiss regulator, particularly in the cross-border banking environment.
- Competition: The financial sector is competitive, but our technological edge and first-mover advantage give us a significant lead. We are not just another bank; we are a transformative force in the industry.
These concerns are valid and will be fully addressed in our business plan, which we would be happy to discuss in detail during a follow-up conversation.
FAQ's
What is the expected ROI, and over what timeframe?
We expect an ROI of 4-6x based on independent audits conducted by PWC, with break-even projected within 2-3 years. The valuation range for the project post-launch is between CHF 1 billion and CHF 20 billion, depending on market adoption and scalability.
How does the bank plan to mitigate regulatory risks, especially with evolving blockchain laws?
We are fully backed by FINMA, Switzerland’s regulatory body, which ensures compliance with both current and future blockchain laws. Additionally, we have strategic partnerships with Lloyd’s & Partners to ensure we stay ahead of regulatory changes as we expand globally.
How does the Artus core banking system differ from competitors, and why is it better?
Our core banking system has been developed by one of the top three global leaders in banking technology, and it is not in use by any of the 10,000 banks globally. It has been stress-tested for eight years and is built specifically to handle blockchain-based services like crypto custody and tokenisation, offering unparalleled flexibility and scalability compared to outdated systems.
What is the timeline for achieving profitability?
According to reports done by PWC, profitability is expected by Year 2 or 3, depending on market conditions and the speed of client onboarding. The Swiss market will be our focus in Year One, with planned expansion into Europe and international markets by Year Two.
Who are the key partners supporting this project?lawyers
Key partners include FINMA, which provides regulatory support, and our specialist Lawyers, who are instrumental in guiding the implementation and compliance of the project. We also have technological partnerships with leading developers of blockchain-based banking systems.
What are the projected operational costs over the first five years?scaleability
The total project budget is CHF 205 million, which includes IT infrastructure, legal fees, regulatory compliance, and operations. This budget is designed to ensure streamlined operations and quick scalability.
What guarantees are in place to secure my investment?
Investor funds are placed in an escrow account, ensuring that capital is only used when predetermined milestones are reached. Additionally, independent audits and assessments from PWC ensure that the project is financially sound.
How scalable is the business model beyond Switzerland?two
We have already signed agreements with a global partner to expand across Europe by Year Two. Our core banking system is designed to serve private, corporate, commercial, and retail clients globally, making our model highly scalable.
What are the biggest challenges facing the project?
The primary challenges include scaling internationally and managing evolving regulatory requirements across different regions. However, our partnerships with FINMA and regulatory bodies mitigate these risks, and our B2B services provide additional income streams to support scalability.
What exit strategy is in place for investors?
While we currently do not have an immediate exit strategy, we are focused on long-term growth with plans to eventually take the bank public. Flexible financial instruments will also be introduced to allow for liquidity options as the bank matures.
Next Steps
After you have stated your interest and participated in a first mutual interview with The Artus Bank Project, you will be asked to sign a non-binding Confirmation of Interest. Once sufficient confirmations have been collected and compliance conducted, share subscription agreements will be issued and accepted on a first-come, first-served basis.
The Artus Bank Project’s task is also to improve the mutual fit and diversity of the Shareholders’s and avoid conflicts of interest. Therefore, we kindly ask that you do not share this link or share this information, but rather that you make your suggestions of your potentially acceptable participant(s) to The Artus Bank Project so we may contact these individuals on your behalf directly.
We are pleased to answer any questions posed by a serious and interested party.
Should participation in this project have piqued your interest, please do contact me. Gavin Nathan, gavin.nathan@theartusproject.com
