IBERIAN, IOTA regulated and operated funds
Presenting IBERIAN, the future of asset management
Thank you!
First of all, thanks for the great community engagement the previous post had and for all the feedback received!
You can now join the IBERIAN Discord Server for keeping up with updates, announcements and for further discussing the project: https://discord.gg/m9keD7k
Reminder
As introduced in the previous article on “Using IOTA as a solution for the US$65.7 trillion Asset Management industry”, IBERIAN is an IOTA based project that aims to disrupt the finance industry by enabling the creation and management of investment funds capable of trading both digital and traditional assets (cryptocurrencies, tokens, stocks, commodities, forex…) on an open source software platform built on top of the Tangle.
I strongly recommend to read the post first for a better comprehension of the one below as this is a continuation of it.
Why IOTA?
IOTA is a DLT that, unlike any other, is feeless, infinitely scalable, ternary and quantum computer resistant. In words of Cara Harbor: The Tangle is a permissionless, no-fee distributed ledger, designed as the basis of a global protocol for the Internet of Things that does not rely on traditional blockchain technology. Industry partners are developing concepts with IOTA across automotive, mobility, eHealth, and smart energy sectors, as well as social impact and government regulations, supply chain, and global trade activities.
The Tangle, Qubic smart contracts and Oracle machines will be the responsibles for the efficiency and reliability of the project.
In a nutshell
IBERIAN will create a solution for all companies, public institutions, individuals and investors in the asset management industry thanks to IOTA technology and Qubic smart contracts. IBERIAN aims to:
- be a solution for companies and public entities inside the asset management industry (Hedge Funds, Mutual Funds, Pension Funds, Investment Banks, etc.).
- be a solution for individuals that have the brain but lack the capital resources to create a traditional investment fund.
- be a solution for investors. The decentralised Iberian Fund Marketplace provides an easy and secure outlet to invest money.
How?
1. In relation to companies inside the industry
IBERIAN facilitates the creation of funds more efficiently while dramatically reducing costs, enabling a much more streamlined asset management activity.
Primarily, this will be achieved by offering a complete asset management software platform where investment entities can customise every aspect of a fund, including management, by choosing between different service providers amongst aspects such as the Exchange, the Price Feeds, support for trading algorithms (if any) and many others.
Secondly, entities will have the ability to dramatically cut costs associated with traditional asset management activity by transitioning to a digital fund structure using IBERIAN, where only a Manager, helped by Qubic smart contracts, is needed. This enables cheaper, more secure, and efficient funds.
This will also help companies attract more investors for free since they will be listed on the Iberian Fund Marketplace, which we will talk about a bit more extensively in a couple of minutes.
2. In relation to individuals
This is the primary problem (and opportunity) that this industry currently presents; individuals who have the intellectual capacity to manage an investment fund but lack the capital needed to set up a fund and compete with the current industry leaders’ US$100,000,000 (source). They are left behind as it is extremely difficult for them to make a living. The economic and legal entry barriers makes it almost impossible to set up a fund.
IBERIAN, thanks to DLT and cryptocurrency-focused investment funds, have the ability to change that: individuals will have now the opportunity to create and manage their own decentralised investment funds; managing both their money and the investments of those for whom they are entrusted. Eventually over time, if they build a proven reputation of profitability and trustworthiness, they will attract more potential investors on the Fund Marketplace due to their outstanding performance, eventually becoming a reliable and influential fund manager.
3. In relation to investors
It is important to differentiate between the two different types of investors (in terms of our purpose): investors who have knowledge about finance but prefer not to manage their savings themselves, and those who lack knowledge in finance but would like to see their money grow.
In both cases the main fear when investing is the complete loss of one’s capital. There are plenty of cases where managers lost all their clients’ money due to misguided (intentional or unintentional) risk management, as is shown in this example.
IBERIAN is the solution, creating risk management smart contracts in which Managers will have to establish a maximum percentage of losses permitted, which, in turn, will be shown to investors selecting the fund. If the losses reach this predetermined threshold, the smart contract will trigger the sale of all opened positions and return the remaining money to their respective investors. Investors can be assured that when choosing the fund, they will never lose more than what is stipulated.
We are also currently testing a number of other possible tools through smart contracts in order to make an investor’s life easier and their investments more secure.
IBERIAN addresses the time and money-related inconveniences for both types of investors with the introduction of the IBERIAN Fund Marketplace which are, basically:
- The loss of valuable time searching for that perfect fund between the plethora of companies and their available funds.
- The money needed to hire a financial advisor to find a suitable fund in order to save all that search time.
So we came up with the IBERIAN Fund Marketplace, where investors will be able to filter and choose their preferred fund which best fits their wants and needs amongst all those available on the platform. This will also benefit managers and entities with cost-free publicity and public exposure, attracting more clients.
Iberian Fund Marketplace
The purpose of this marketplace is to make life easier for all investors, managers and companies and this is why we are creating it in a way which will be beneficial for all parties:
- Precision. The Marketplace will allow investors to use as many filters as needed (e.g. 3-year average return, total fund capitalisation, number of investors per fund, duration, name of the manager/entity, etc…).
- Security. The creation of a more secure investing experience due to the storage of the complete track records of every fund and manager on the Tangle, the safest way for data storage, then shown publicly when searched in the Marketplace.
- Marketing. Managers and entities will enjoy cost-free publicity. Those with an outstanding performance will appear first in the rankings, providing higher visibility for potential investors.
- Privacy. Automatic or manual access to the funds with the option of private links and passwords.
The IBERIAN Fund Marketplace will be the cornerstone of the supply and demand of investment vehicles, connecting managers, entities, and investors in the same location.
More details will come in due time, the realisation of this project depends firstly on the Qubic project development by the great team behind the IOTA Foundation.
And of course, IOTA will be the only platform’s fuel. There will certainly not be an issuance of another random utility token.
IOTA Foundation: https://www.iota.org
Join IOTA Evangelist Network [IEN]!: https://ien.io
IBERIAN Discord server: https://discord.gg/m9keD7k
Contact me via Discord: JuananPGM#0295
