Crypto exchange to tokenise motor finance claims
Tokenisation platform Bitfinex Securities has announced a £100m direct listing of tokenised equity to provide litigation finance for motor finance claims.
Investors in the £100m token will receive a share of the claims recovery, which will be split proportionately.
The vehicle, known as TITAN2, has a maturity date of up to three years and will be managed by a private Luxembourg special-purpose vehicle. It will also support the claims recovery process pursued by a UK-based law firm on behalf of claimants.
This news comes ahead of the UK Supreme Court’s highly anticipated ruling next month in the motor finance case.
Merchant banking group Close Brothers and South African Firstrand Bank are the targets in a case that may turn the motor finance sector on its head.
This came after the Court of Appeal, last October, sided with consumers over the point that a broker could not lawfully receive a commission from the lender without obtaining the customer’s fully informed consent to the payment.
Within six weeks of this Supreme Court judgment, the City regulator will announce whether it plans to introduce a redress scheme.
Bitfinex’s crypto token investments
Bitfinex also had a £5m listing of a crypto token for investments in regulatory capital for a UK-based credit union.
The token, known as TITAN1, will offer investors a quarterly dividend. Upon completion of the fifth year following issuance, the token’s coupon rate will increase if the credit union has not fully redeemed the subordinate debt.
Both tokens have been issued by specialist tokenised asset infrastructure provider Ctrl Alt and will be regulated by Kazakhstan’s regulator, Astana Financial Services Authority.
Jesse Knutson, Head of Operations at Bitfinex Securities, said: “The respective listings offer investors an attractive return in combination with the opportunity to diversify their existing portfolios with exposure to digital assets.”