This is our proposal to include WiV as a collateral asset
1. Who is the interested party for this collateral application?
Anyone interested in investing into asset backed tokens, people with interest into alternative investments class, wine collectors and blockchain enthusiasts with an aim to contribute to merge the old broken way of trading and investing in wine into the new and more secure and transparent way of trading and investing in wine. All in all, people interested in making wine a secure investment class.
2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.
WiV Technology is a blockchain-based unique asset technology designed for wine producers and merchants. With offices in London, Oslo and Singapore, the WiV blockchain technology issues non-fungible tokens to create a secure global asset register and decentralised financial marketplace for fine wine and spirits. WiV facilitates provenance record-keeping, trading liquidity, geolocation and market assurance. For further information, go to www.wiv.io
WiV is launching a tokenised index fund product where each wine index fund has a Set of circulating fungible erc20 tokens on the blockchain for trade and investment on crypto exchanges. Each Set is a digital asset (ERC-20) that represents a fully collateralised portfolio of wine and fiat-pegged coins (DAI)
3. Provide a brief history of the project.
WiV Technology was formed in 2018 with a vision to fight fakes and make it easier and more secure to trade unique assets and turning it into a financial instrument. With that we created the best in class tokenisation platform for Unique Assets
In 2019, WiV Technology is awarded the “Seal of Excellence” from the EU’s Horizon 2020 programme for the WiV platform. EY (Ernst & Young) is a technology & audit partner for WiV.
As the first in the world WiV transacted a blockchain enabled wine futures in December last year and launched our marketplace at OpenSea in late February this year. WiV is currently the leading player for clearing wine trades
4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.
5. Link any available audits of the project. Both procedural and smart contract focused audits.
Smartcontract written by EY. Based on OpenZeppelin contracts library for ERC-721. A straightforward and uncomplicated contract.
6. Link to any active communities relating to your project.
7. How is the applying collateral type currently used?
Our collateral which is the WiV Token represents a 300 year old commodity that has been traded and used for collateral for hundreds of years. We have taken the assets and digitised them with our WiV Token which represents the value of the assets which is Wine. The value of each token is based on the asset, we use a real time valuation that is based on the LivEx median pricing.
8. Does one organisation bear legal responsibility for the collateral? What jurisdiction does that organisation reside in?
All wines that are tokenised with the WiV Token are under custodianship of Unique Asset Custody Limited which is a UK limited company under UK/Wales law. All wines are stored with a 3rd party secure storage facility which bear the legal responsibility of the collateral, it is also insured for theft, fire or breakage. Today most of the tokenised wine is stored in the UK, primarily Octovian and London City Bond.
9. Where does exchange for the asset occur?
It can either happen on WiV’s own platform or on the market place OpenSea.
10. (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.
Short summary: Wine as an asset that is stored in bond (see below) is an unregulated activity. Meaning that as long as the wine is stored in a secured 3rd party bonded warehouse that is approved by WiV there are no regulatory obstructions or grey zones. Most of our wine is stored in UK warehouses.
Wines that are sold ‘bond’ have not had the duty and VAT – also known as sales tax – paid on them. This is a particularly common way to buy wine for investment, and is also used for wine that is purchased en primeur (futures).
11. (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.
Our WiV tokens are 100% backed by a physical asset (wine) that are exempt from regulations in most jurisdictions that follow the WTO treaty this has been the case for hundreds of years. As long as they stay in a bonded warehouse they will be treated as investment wine, as soon as you pay duty and take them “out” they will be classified as alcoholic beverages in many jurisdictions and will also be treated that way thereafter.
12. (Optional) List any possible oracle data sources for the proposed Collateral type.
Trader, warehouse, chateaus/wineries.
13. (Optional) List any parties interested in taking part in liquidations for the proposed Collateral type.
There will be two options depending on the volume.
Mid to high volume: The liquidation will be in addition to the above directed towards preferred wine merchants.