LITEPAPER

Last updated 12 September 2018
Version 3.0
Created by: Mihail Lala

Imagine having a wallet in your pocket where all your assets live. Whether it is fiat1, cryptocurrencies or even gold. Imagine being able to transfer funds across borders, instantly and at almost no cost.

Now imagine you’re a bank or financial service provider looking for ways you can participate in the fast-evolving world of crypto-based technology. Imagine accessing a new customer base and opening up new revenue streams.

You’ve just envisioned WAWLLET, as we have.

We noticed a tug-of-war between the traditional financial systems and the fastevolving blockchain technology. We wondered why that has to be the case and why both these systems could not leverage the strengths of the other. So, we started looking for ways to bridge this gap and find a solution that would benefit everyone involved - banks, exchanges, financial service providers and individuals. And that was the genesis of WAWLLET, a global network that connects banks, cryptocurrency exchanges and other regulated financial institutions to provide users with a One Stop Service for all their asset-management needs.

Our solution has two critical parts:
A Multi-Asset Wallet and the WAWLLET Platform.

WAWLLET’s multi-asset wallet will be powerful and flexible enough to allow users to manage all their assets from a single mobile or desktop application. The wallet would have different pockets for fiat, cryptocurrency and commodities (like gold) as well as one to facilitate card payments online. This would be a Personal Financial Passport that is recognized, respected and valued by all the entities connected to the WAWLLET network.

The WAWLLET platform would support a global network of banks, exchanges and other financial institutions, bridging the gap between legacy mechanisms and blockchain technology as well as between traditional markets and crypto markets. The platform would enable individuals to interact with banks and financial service providers and conduct transactions in a fast and easy way. While facilitating fast and seamless financial transactions worldwide, WAWLLET will ensure full customer authentication and complete compliance with all the legal aspects of each targeted region.

WAWLLET will have a global platform that securely connects all our partners through new standard APIs. This would create a 100% trusted place for customers to manage all their personal wealth and assets, backed by a robust platform that integrates multiple accounts, facilitates monetary transactions within seconds and ensures completely hassle-free compliance across multiple geographies.

How WAWLLET Works

There are certain strengths in every financial system. Banks have a longstanding reputation. Blockchain technology has proved its mettle in facilitating currency transfers in a safe, swift and transparent way. Similarly, commodity exchanges and payments processing services have streamlined certain transactions. Our aim is not to disrupt any existing institutions, nor do we wish to compete with them. Our objective is to combine and build on the strengths of each of these institutions, while breaking barriers to facilitate the smooth flow of funds. This is what led us to envision a multi-asset wallet that is in full compliance with the laws of every jurisdiction.

Creating a bridge between traditional & new financial systems

WAWLLET brings together the best of the traditional banking system, new crypto and blockchain-based platforms, new and traditional commodity exchanges and online payment processing – all housed under one roof. The vision is to make personal money management completely hassle free, efficient and inexpensive. This vision aims to effectively integrate the multiple accounts that people maintain for different purposes, removing barriers for funds to flow across jurisdictions or between different financial institutions and making compliance easy and super-fast.

The WAWLLET Network

Our aim is to create a network that connects as many banks, cryptocurrency exchanges and other regulated financial institutions as possible, across the globe in order to provide users with a One Stop Service for all their asset-management needs.

When WAWLLET goes live, users will have unified management of all their wealth and assets with a single application and a personal financial passport that is recognized by all the financial institutions that have integrated with the WAWLLET network.

Financial Passport

When setting up a WAWLLET account, users will be asked to follow a KYC (Know Your Customer) procedure for Anti-Money Laundry (AML) purposes. Once this procedure is completed, users will have created their financial passport, which will be recognized across all the financial institutions and service providers that have integrated with the WAWLLET network. Similar to a travelling passport recognized worldwide, the WAWLLET Financial Passport will be valued, respected and trusted across all the entities connected to the WAWLLET network. This is bound to save time and money for all of WAWLLET network members – financial institutions and users.

Seamless, cheap and fast execution

No more time wasting. WAWLLET will process any type of transaction within seconds, whether it’s fiat to fiat, or fiat to crypto, or crypto to fiat, or any type of transaction. All transactions with WAWLLET will be as easy as sending a text message.

No more unjustifiably large fees for transactions. WAWLLET offers a non-tradable fixed-value cryptocurrency to backup any transaction and protect against volatility.

Global Compliance

No more hassles with compliance. WAWLLET will use only licensed service providers in each targeted region. We understand that the banking and financial regulations in each country will be unique. WAWLLET is working with leading legal and accounting firms to map the regulatory regimes and is working closely with local banks and financial institutions to ensure full compliance in each of the targeted regions. We are also taking into consideration all the restrictions and incentives in each region.

This takes massive effort and resources initially, but will streamline compliance and smoothen the process for customers and our partner network of banks, exchanges and other financial service providers

There are several renowned organizations that can help with our extensive study of each regulatory regime. Organizations, such as PwC and Deloitte, have highly qualified and experienced teams that offer regulatory compliance services to help overcome the challenges and to stay abreast of any changes in the regulatory requirements as well as industry standards and best practices. These organizations provide efficient and cost-effective solutions to manage compliance risk (associated with specific requirements, like AML and fair lending) across jurisdictions.

WAWLLET’s platform will only integrate licensed financial service providers, and it would be in their best interest to help our team develop an efficient way to ensure full compliance.

Multi-Asset Wallet Functionality

1. SECURITY
The pocket policy and the security policy make WAWLLET a 100% trusted and secure place to manage all the customer’s personal wealth and assets. WAWLLET will not hold any asset. In an event that a customer wishes to discontinue the use of their multi-asset wallet, customers’ assets remain unchanged in their respective service providers’ accounts or crypto-wallets.

2. COMPETITIVE PRICING
WAWLLET will ensure a competitive exchange rate by offering real-time comparisons of exchange rates via trusted network partners. All the transaction/operation fees will also be highly competitive and WAWLLET will periodically show the customer additional options for decreasing the service fees.

3. ASSET POCKETS

3.1 Fiat Pockets
The FIAT Pocket is designed to hold and manage the balances of all FIAT currencies. After the user sets up a WAWLLET account, the chosen partner bank(s) automatically provide multi-currency IBAN(s). The user can choose to establish one or multiple accounts at one partner bank or at multiple partner banks, licensed in the user’s jurisdiction.

WAWLLET will follow the latest risk-based KYC procedures relating the new WAWLLET account. Any new bank account will be valid for deposits, but restricted for withdrawals or payments until the user complies with KYC procedures by submitting the required documents. If the user fails to submit the requested documents within a specified period or does not meet the KYC requirements, the WAWLLET account will be suspended. During the WAWLLET account setup process, the user must select a primary currency that will be used as the main transaction unit for the multi-currency account. WAWLLET will enforce the entire KYC procedure in partnership with the partner bank’s specific regulatory requirements, as well as ensuring compliance with relevant international anti-money laundering (AML) legislation. All required documents will be stored accordingly and shared with the WAWLLET network of partners using state-of-the-art technology and realtime API.

The FIAT Pocket allows the user to:
• Receive money from an external account (held or not held by the user)
• Deposit money at any branch of a partner bank
• Transfer assets between pockets
- FIAT Pocket - Card Pocket
- FIAT Pocket - Cryptocurrency Pocket
- FIAT Pocket - Gold Pocket
• Transfer money to an external account
• Exchange currency within the multi-currency account to/from sub-accounts

3.2 Card Pocket
The Card Pocket is designed to enable WAWLLET customers to spend their assets in any store that accepts an international payment card. Following KYC compliance, the partner card issuer will automatically issue the user a VISA/MASTERCARD/AMEX debit card. The card will be issued in the user’s name and shipped by mail or courier to the registered address. After receiving the debit card, the user must activate the card using the Card Pocket. The debit card will debit only this associated card pocket. For security reasons, the debit card shall NOT debit any other pocket (a FIAT Pocket associated card cannot debit the Cryptocurrency Pocket, for example).

When using the debit card, the user will have access to Card Pocket funds only. The user can easily recharge the Card Pocket by instantly transferring assets from any other pocket. The debit card might have default daily/monthly limits for security reasons. The user may change the limits from the WAWLLET toolset.

3.3 Crypto Pocket
The Crypto Pocket is designed to support all available cryptocurrencies, as well as the WIN token, designed to exclusively pay WAWLLET fees. The Win token functions as an in-app coin or token. Read more on the WIN tokens in the dedicated session below. Once the user sets up a WAWLLET account, a hierarchical deterministic crypto wallet will be generated and associated with the Crypto Pocket for each cryptocurrency. All transactions made through the Crypto Pocket can be traced via the blockchain, and will be visible to anyone, as blockchain technology is built on trust and transparency. The user can access the Crypto Pocket instantly, without any KYC protocol. The Crypto Pocket can be used to send and receive cryptocurrency from the Crypto Pocket to an external cryptocurrency address or wallet. All other transactions, including transfers between WAWLLET Pockets, will be available only after KYC compliance.

WAWLLET will focus on providing customers with the best ergonomic user experience, so that even early adopters who do not fit the classic profile of a cryptocurrency user can easily buy and transfer cryptocurrencies. All transactions using the Crypto Pocket will be performed in a highly secure environment that meets the highest standards and protocols of cyber system security

Apart from enabling cryptocurrency transfers, WAWLLET will monitor the fees and leverage its exchange network to offer its clients the best exchange rates on the market.

3.4 Gold Pocket
The Gold Pocket is designed to manage the user’s gold commodity. After the initial launch of WAWLLET, additional commodities will continue to be added. All gold commodities will be physically backed-up by third-party regulated Vault Partners. The amount stored in the Gold Pocket is always at the user’s disposal for trading or for physical withdrawals at the partner’s specific storage location, if the user’s jurisdiction law and regulations permit such transactions.

The entire gold commodity will be insured by the Vault Partners through a thirdparty, and stored in secured vaults according to international standards and safety regulations. The user may opt for secured and insured gold shipping to the registered address. In this situation, national legislation may apply, and specific taxes or fees may be charged.

WAWLLET will execute the transaction by asking EXCHANGE CU1, licensed in USA, to convert the requested amount of USD into a fixed-value crypto (e.g. Bitcoin) and transfer it to the unique crypto virtual account assigned to the operation. When the unique crypto virtual account is credited by EXCHANGE CU1, EXCHANGE CE2 will be asked to exchange the amount credited into euros for the beneficiary’s euro-based fiat Pocket.

The processing time for the transfer between Mark’s fiat Pocket and Exchange CU1 is a few seconds, as Exchange CU1 has an account established at the bank BU1, which holds Mark’s fiat currency. The processing time for creating the unique crypto virtual account and crediting it by Exchange CU1 is only a few additional seconds.

The processing time for debiting the unique crypto virtual account and exchanging the crypto into euros by Exchange CE2 is a few more seconds. The processing time for the transfer between Exchange CE2 and Louis’ fiat Pocket is also just a few seconds, as Exchange CE2 has an account established at the bank BE2, which holds Louis’ fiat currency. Following this process, any user can almost instantly move assets from one pocket to another, or from one user to another, whether it involves fiat-to-crypto or crypto-to-fiat within the pockets. Similarly, the transfer of crypto-to-fiat or fiat-tocrypto between users will also be nearly instantaneous. Moreover, all transactions would be in full compliance with the law of the relevant jurisdiction.

How It All Works – An Illustration

WAWLLET will integrate Banks, Cryptocurrency Exchanges, Commodity Traders and Vaults from each targeted jurisdiction, as per the below chart.

Mark lives in USA and has a WAWLLET account. He wishes to transfer $100 to his friend, Louis, who lives in France. Louis also has a WAWLLET account and wants to receive the funds in euro. Mark sends $100 from his US dollar-based fiat Pocket to Louis’ euro-based fiat Pocket. WAWLLET processes this transaction within seconds through the below described mechanism.

WAWLLET will execute the transaction by asking EXCHANGE CU1, licensed in USA, to convert the requested amount of USD into a fixed-value crypto (e.g. Bitcoin) and transfer it to the unique crypto virtual account assigned to the operation. When the unique crypto virtual account is credited by EXCHANGE CU1, EXCHANGE CE2 will be asked to exchange the amount credited into euros for the beneficiary’s euro-based fiat Pocket.

The processing time for the transfer between Mark’s fiat Pocket and Exchange CU1 is a few seconds, as Exchange CU1 has an account established at the bank BU1, which holds Mark’s fiat currency. The processing time for creating the unique crypto virtual account and crediting it by Exchange CU1 is only a few additional seconds.

The processing time for debiting the unique crypto virtual account and exchanging the crypto into euros by Exchange CE2 is a few more seconds. The processing time for the transfer between Exchange CE2 and Louis’ fiat Pocket is also just a few seconds, as Exchange CE2 has an account established at the bank BE2, which holds Louis’ fiat currency. Following this process, any user can almost instantly move assets from one pocket to another, or from one user to another, whether it involves fiat-to-crypto or crypto-to-fiat within the pockets. Similarly, the transfer of crypto-to-fiat or fiat-to-crypto between users will also be nearly instantaneous. Moreover, all transactions would be in full compliance with the law of the relevant jurisdiction.