Julien Chaisse & Jamieson Kirkwood on Tokenised Funding and Initial Litigation Offerings: the New Kids Putting Third-party Funding on the Block (Law and Financial Markets Review)

"Tokenised funding and initial litigation offerings: the new kids putting third-party funding on the block"

Julien Chaisse & Jamieson Kirkwood

Law and Financial Markets Review 
Published in December 2022 online

pp.1-23
https://doi.org/10.1080/17521440.2022.2153609

Abstract: This article presents a critical assessment of how blockchain technology is disrupting the monetisation of litigation claims through tokenization – and consequently further shaking up a revolutionary area in litigation financing. The significance in litigation financing is chiefly because tokenization presents securities to the general public in a far more accessible way than was previously the case – and even might enable non-accredited investors to participate in certain litigation financing investments for the first time (or with reduced barriers to entry). The assessment also considers the implications of a litigation pool that was already growing towards USD 20 billion, potentially now getting even larger. We further consider the regulatory challenges and the new moral hazards created in this fast-moving space.