The Institutional VC in Germany - Enabling Tokenised Asset Management with Mara

The Institutional VC in Germany, a web3-focused venture fund, sought a reliable SPV solution to hold tokenised assets for their investors. Due to German tax rules, holding tokens directly for the Fund’s LPs would jeopardise the fund’s tax-transparent status. The Institutional VC in Germany required a partner capable of navigating the complexities of tokenised assets while ensuring compliance with regulatory requirements.

Mara delivered a tailored SPV solution, acting as the legal title holder of the tokens while ensuring that investors remained the sole Ultimate Beneficial Owners (UBOs). Unlike other service providers that avoid crypto-related activities, Mara’s expertise and proactive approach enabled The Institutional VC in Germany to meet their needs seamlessly.

Challenge

The Institutional VC in Germany faced several challenges in managing tokenised assets for their investors:

  1. Tax Compliance: German tax rules posed a significant challenge, as holding tokens directly for the Fund’s LPs would compromise the fund’s tax-transparent status. The Institutional VC in Germany required an SPV solution to address this issue.
  2. Crypto-Specific Expertise: Many service providers avoid crypto-related activities, leaving The Institutional VC in Germany with limited options for a partner capable of managing tokenised assets.
  3. Investor Onboarding and KYC: The Institutional VC in Germany needed a partner to handle the onboarding and KYC process for their investors, ensuring a smooth and compliant sign-up process for the SPV.
  4. Secure Wallet Management: The Institutional VC in Germany required a secure and transparent solution for managing the wallet account, with both Mara team members and The Institutional VC in Germany managing partners named on the account.

Mara's Solution

Mara provided a comprehensive solution to address The Institutional VC in Germany challenges:

  1. SPV Structuring for Tokenised Assets: Mara acted as the legal title holder of the tokens, ensuring that investors remained the sole UBOs. This structure preserved the fund’s tax-transparent status under German tax rules.
  2. Crypto Expertise and Willingness: Unlike other service providers, Mara demonstrated a willingness to engage with crypto activities, leveraging its expertise to deliver a compliant and effective solution for The Institutional VC in Germany.
  3. Investor Onboarding and KYC: Mara handled all onboarding and KYC processes for The Institutional VC in Germany’s investors, guiding them through the SPV sign-up process and the transfer of funds for the initial token purchase.
  4. Secure Wallet Management: Mara ensured secure wallet management by issuing passkeys to team members and naming them on the wallet account alongside The Institutional VC in Germany’s managing partners, providing transparency and security.

Process

  1. SPV Design and Structuring: Mara worked closely with The Institutional VC in Germany to design an SPV structure that complied with German tax rules and preserved the fund’s tax-transparent status.
  2. Investor Onboarding: Mara guided investors through the SPV sign-up process, handling KYC checks and ensuring a smooth transfer of funds for the initial token purchase.
  3. Wallet Setup and Security: Mara facilitated the setup of a secure wallet account, issuing passkeys to team members and naming them on the account alongside The Institutional VC in Germany’s managing partners to ensure transparency and security.

Impact and value proposition

  1. Tax Compliance and Transparency: Mara’s SPV solution enabled The Institutional VC in Germany to comply with German tax rules while preserving the fund’s tax-transparent status, ensuring regulatory alignment.
  2. Crypto-Specific Support: By engaging with crypto activities, Mara provided The Institutional VC in Germany with a solution that other service providers were unwilling to offer, addressing a critical gap in the market.
  3. Streamlined Investor Experience: Mara’s handling of onboarding and KYC processes ensured a seamless experience for The Institutional VC in Germany’s investors, enhancing their confidence and satisfaction.
  4. Secure and Transparent Wallet Management: The secure wallet setup, with passkeys issued to Mara team members and The Institutional VC in Germany managing partners, provided a robust and transparent solution for managing tokenised assets.



Conclusion

Mara’s partnership with The Institutional VC in Germany highlights the importance of flexibility, expertise, and innovation in managing tokenised assets for web3-focused funds. By delivering a compliant SPV solution, handling investor onboarding, and ensuring secure wallet management, Mara enabled The Institutional VC in Germany to navigate the complexities of crypto investments while preserving their tax-transparent status.