Flexible Engagement Models

White-label services

Direct relationship between CheckSig and the intermediary, indirect with the end customer

The contractual relationship for service provision is between the end customer and the intermediary. In this setup, CheckSig assumes the role of a process and technology provider for the intermediary, following the typical outsourcing practices. Specifically, CheckSig does not possess detailed knowledge of individual customer balances and transactions; its role is limited to order execution and sub-custodianship within an omnibus arrangement held under the intermediary’s name. As a result, the responsibility for overseeing, monitoring, and verifying the operational aspects of the end clientele lies with the intermediary.

Some advantages associated with this contractual/operational approach are as follows:

• Uniform inclusion of customer-signed contracts for specific services within the processes and contractual documentation established by the intermediary.
• Streamlined and centralized management of the relationship with the client regarding savings and investments, facilitated through authorized and monitored intermediaries such as fund managers and financial advisors.
• Empowerment for the intermediary to set ex-ante and ongoing limits on the amount invested by the end customer in virtual currencies and crypto-assets, ensuring alignment with the customer’s total assets held at the intermediary and their risk profile in accordance with MiFID guidelines.
• Integrated management of legal tender liquidity linked to buying and selling activities, which -depending on the intermediary’s chosen operating model- could exclusively flow through the client’s current account held with the intermediary.

Branded services

Indirect relationship between CheckSig and the intermediary, direct with the end customer

In this mode, the buying and selling service, along with custody, is directly contracted between the end customer and CheckSig, which acts as the direct holder of the relationship. CheckSig receives buying and selling instructions directly from the end customer and potentially from the intermediary. Consequently, the contractual relationship is independent of the one between the intermediary and the customer, and the assets held at CheckSig are registered under the individual customer’s name.

Therefore, CheckSig assumes responsibility for overseeing, monitoring, and verifying the operations of the end clientele, including anti-money laundering checks and reporting to the local oversight authorities. During the contract signing phase with the customers, explicit communication of all relevant data to the intermediary for potential ongoing analysis activities, as well as periodic reviews, would be provided, catering to the potential varied needs of intermediaries.

Some advantages associated with this contractual/operational approach are as follows:

• Maximum Transparency for the Customer: There would be comprehensive transparency toward the customer regarding the presence and role of CheckSig. This is due to the fact that the customer would be required to sign a dedicated account opening contract with CheckSig.
• Specialization in Virtual Currencies and Crypto-assets: CheckSig boasts a high level of specialization in virtual currencies and crypto-assets, as its entire organizational structure is exclusively dedicated to these operations.
• Role Separation: The intermediary functions as a quality signal provider, exercising full discretion in identifying the end customers to whom the CheckSig service should be recommended.
• Intermediary’s Enhanced Capabilities: If authorized by the customer, the intermediary gains the ability to transmit end customer orders to CheckSig, collected through the intermediary’s channels, and to receive information concerning the end customer’s position at CheckSig, facilitating an integrated representation, particularly for risk monitoring purposes.