Launched in October 2022, Qwarks, which is still awaiting registration as a digital asset service provider (DASP), aims to help wealth advisers offer cryptos to their clients.

A few days shy of its first birthday, Qwarks already has things to celebrate. The French start-up has just raised €800,000 from a number of individual investors. According to our information, a leading French bank is also part of the round.

Qwarks is a crypto management company that targets traditional finance players such as wealth management advisers (WMAs) and family offices... "Our aim is to enable WMAs and other players to offer crypto products to their retail clients", explains Marc Lécorché, co-founder of Qwarks.

Qwarks, which is still awaiting registration as a digital asset service provider (DASP) issued by the AMF before it can operate, will offer two types of managed mandates. The first will charge management fees (2.5% of the amount invested) and performance fees (10% commission above 15% annual performance). The second offer works solely with performance fees (20% commission above 15% annual performance).

"The aim of the second offer is for us to be totally aligned with investors' interests," sums up Marc Lécorché. The first offer is available from €20,000. The second is available from €80,000. Importantly, each CGP also takes commission, which adds to the cost of the service. "It's normal for the CGPs to take a commission and our added value is on the seriousness and reliability of our offer", adds the man who has worked at BNP Paribas and Rothschild in particular.

To manage the investments of CGP and family office clients, Qwarks, which has 5 people in the team, works with the Kraken exchange platform. In total, Qwarks will have access to 220 cryptos.

It has a global account with sub-accounts for each contract. "This is by far the most interesting solution, particularly from a financial point of view," explains Marc Lécorché. For this type of contract, Kraken can decide not to charge for the service and only take commission on volumes.

Qwarks is obviously not the only player in this niche. Start-up Tilvest, which raised €500,000 in 2022, has developed a similar offering for financial players. Other companies such as Coinhouse, considered to be the leader in France, also work with CGPs and family offices. In particular, the former Maison du Bitcoin has signed a partnership with Nortia, which is a platform bringing together more than 1,000 CGPs in France.

The aim of Qwarks' fundraising is to invest in the platform and recruit sales staff to go out and canvass CGPs and family offices. And there will be plenty of them to go around!

This analysis does not constitute investment advice. It has been written without taking into account your personal circumstances, including your financial situation, risk profile and investment objectives.

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