Monday, January 16, 2023

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)

Law and Financial Markets Review 
Published in December 2022 online
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.

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