Privateum’s Cooperative Business Model

“Cooperative enterprises build a better world.”

- Juan Somavia, Director-General of the ILO

Finance is complex. Mix in the nuances of Crypto, Blockchain and a cooperative business model, and it becomes more confusing.

In this blog post I am going to share with you why Privateum has adopted an emerging and resilient kind of business model, a Cooperative Business Model.

A cooperative is a voluntary association of people with collectively owned funds, organized on the democratic principle of equality, who join together to supply for their requirements through mutual action, and in which the objective is service rather than profit.

Cooperative’s are active in every sector of the global economy. It is well known, while the global economy keeps getting more efficient and generating more value, most people are getting a smaller and smaller portion of it. The investor-owned companies that dominate our economy are geared to maximizing shareholder value, more than pleasing customers, creating jobs, supporting communities, or benefitting society and ecosystems.

Cooperatives are formed to balance the massive growth of inequality between the world’s rich and poor; an issue that, if not addressed, has major economic, social, cultural, environmental, and political consequences. They empower people to improve their quality of life and enhance their economic opportunities through self help.

The Cooperative Business Model is mainly based on the idea that those who use an enterprise (the members) should also own and govern it.

Privateum Cooperative’s purpose is to connect individuals, businesses, or other co-ops under a legal representative’s umbrella in order to realize their economic, cultural and social needs.

As co-owners, members receive dividends from the enterprise’s profits, proportional to how much they have spent.

Our technological platform for financial system integration is based on the Private Ethereum Secured Network where banks, insurance companies, borrowers, lenders, stores, groceries, big and small businesses can integrate within one global ecosystem.

Privateum is a multi-tier cooperative, with all the benefits of legal protection, equal opportunity and access to all its partners and members.

We are creating a cooperative business model, implementing a supporting platform, developing technologies, and delivering innovations for the crypto market by applying true and tested frameworks and methodologies.

We provide businesses the ability to connect to crypto and make the most out of it while excluding current limitations such as companies neglecting quality over quantity, not being able to connect with better suppliers and manufacturers, and excessive cost cutting procedures.

There are no users left out of this solution as the architecture allows for the inclusion of B2B, B2C, and C2C.

Cooperative Model Provides:

  • Fast and secure local/international transactions with Zero fees
  • Legal protection, Privacy and Confidentiality
  • International investment and asset management programs
  • Membership feature for accessing our growing member network
  • Increase purchasing power and cut’ operational cost through service sharing

Members Receive:

  • Legally Private financial transactions within global partnership network
  • Global asset management network growth opportunity
  • Share of profit for all our Cooperative members/partners
  • Voting rights for promising investment programs
  • Reduce production costs, to provide competition to larger companies with deeper pockets

In many ways, cooperatives resemble other businesses. They have similar physical facilities, perform similar functions and follow business practices. They are usually incorporated under state law by filing articles of incorporation, granting them the right to do business. The organizers draw up bylaws and other necessary legal papers. Members elect a board of directors. The board sets policy and hires a manager to run the day-to-day operations.

The differences are found in the cooperative’s purpose, its ownership and control, and how benefits are distributed. The cooperative business model combines not only the best of small business ownership and a corporation, but it also provides governance, potential for longevity and limited liability, like a corporation.

It has two key advantages. The first is how well it supports local economic, business and community development. The second is how versatile the model is- capturing both a small, mom & pop shop or a multi-stakeholder global enterprise, and just about everything in between.

The International Cooperative Alliance adopted seven cooperative principles in 1995.

The Cooperative Principles do not stand in isolation from each other. They are interdependent principles which support and strengthen each other. Cooperatives are enterprises based on ethics, values, and principles that comprise more than 12% of humanity are part of the 3 million cooperatives in the world.


Cooperatives contribute to the sustainable economic growth and stable, quality employment, providing jobs or work opportunities to 280 million people across the globe, in other words, 10% of the world’s employed population. Privateum believes as member-owned, member-run and member-serving businesses, cooperatives empower people to collectively realise their economic aspirations, while strengthening their social and human capital and developing their communities.

The benefits of cooperatives are visible across multiple areas. People usually join a cooperative for the benefits — to enjoy such things as the pooling of risk, the ability to make a large purchase in a group, to become empowered and feel like they are part of a meaningful company.

NCBA CLUSA, the Cooperative Development Foundation and the Urban Institute worked together to identify seven areas of impact where the benefits of the cooperative structure can be seen. The organizations dubbed those seven areas the “ABCs of Cooperative Impact.”


Co-ops offer multiple benefits to their members and the community around them. Each member generally holds a single vote, regardless of the number of units held.

It is operated on the principle of one member, one vote.

That is, unlike investor owned businesses where voting rights are based on ownership share, each member of a cooperative has the same voting power. And unlike investor-owned businesses, they return profits to their members proportionate to their use of the cooperative, not proportionate to ownership share.

By actually collaborating together and buying business supplies and services as a group, instead of doing it individually, members have access to volume discounts and are able to negotiate from a much stronger position. Another advantage is that through this way of working the members are able to lower distribution costs, conduct joint product promotion and get the ability to distribute products in the quantity and types that will be more interesting to purchasers.

Member shares can be transferred from one owner to another. The cooperative itself will survive even once all of the original members have moved on.

Now is the perfect time for Privateum Initiative to go mainstream. The inequality gap is widening. There is a need for jobs. Individuals have a voice through the internet. And we have a passionate youth wanting change.

Privateum Initiative is based on the philosophy of mutual help. It isn’t just about uplifting the members economically, but also morally, and socially. We have evolved the Privateum Initiative to a truly innovative financial crypto platform that allows legal, quick, safe, and secure transactions between all parties.

There are two key components of Privateum that make it unique in the crypto market. First is its unique cooperative business model where it connects individuals, businesses, and other cooperatives under one legal umbrella. Privateum has created the crypto market’s first financial platform to integrate banks, insurance companies, borrowers, lenders, stores, small business to medium and large enterprises, all within one global system. Second, Privateum has developed a proprietary privacy and security infrastructure that protects all those in the cooperative operating within its ecosystem. Privateum has built a protected network with Privateum Zero Trust (™) and Privateum Encrypt Everything, Know Nothing (™) technology where no one has access to member or transaction data, not even Privateum. The Privateum Ghost Network (™) safeguards all data 24/7/365 on the secured private blockchain protected network. Privateum’s architecture is based on Proof of Authority (PoA) consensus algorithm so everyone can benefit from blockchain and adhere to a sustainability pledge to never harm the environment with wasteful and costly crypto mining.

Now is time to look at how this business model can help empower people and communities in the future. Co-ops are poised to help tackle the challenges such as inequality, climate change and the sometimes-negative influence of information technology on our work and lives. Cooperatives provide an imaginative, exciting, possible future.They are a key strategy to empower people and communities in building a more inclusive economy.

Join us on our journey and join the Privateum cooperative to benefit from a private, secure, global, sustainable fintech crypto platform built to protect honest individuals, high integrity organizations, and purpose-driven companies dedicated to one enduring idea: improving and adopting the world-changing power crypto by bringing enterprise solutions to the blockchain ecosystem.”

The world’s ONLY Private, Secure, Global, and Sustainable Crypto Platform



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Privateum Global

Privateum is a technological and legal solution based community platform that enables private assets management.