The American Lawyer has published a long form article on the feeding chain beginning to form around blockchain and asset-backed securitization.
The American Lawyer reports the securitization ranks high among the types of capital market product structures that could benefit the most from the blockchain revolution.
Here’s the introduction to their report…
The question is no longer if, but when, for these blockchain-based ABS products, said lawyers from the firms, although all cautioned that such novel transactions are unlikely to happen this year. Law firms, however, are already ramping up specific practice groups that cater to clients preparing to roll out certain initiatives in the blockchain space.
“The blockchain securitization market is still in its infancy,” said A. Michael Pierson, a partner in the securities and private equity practice at FisherBroyles. Pierson serves as co-chair of his cloud-based firm’s fintech and blockchain practice, which already has 18 lawyers despite launching less than a year ago. The group includes Adam Ettinger, a partner who joined FisherBroyles in March from Sheppard, Mullin, Richter & Hampton, where he served as co-head of that firm’s blockchain technology and digital currency team.
For his part, Pierson, as true for many lawyers currently engaged in blockchain-related practices, began his career in a traditional securities practice, having previously worked for the U.S. Securities and Exchange Commission and as an assistant general counsel at financial services giant The Goldman Sachs Group Inc.
Matthew Duncan, a partner at Morgan Lewis in London, where he joined the firm in 2015 from K&L Gates, said at least one of his clients is now working on a blockchain-based ABS deal. But the timing for a rollout of that matter ”remains subject to usual factors, such as market conditions, as well as the technical development work and testing,” Duncan said.
His clients, of course, “will not publicly announce a transaction—including a blockchain-based securitization—until it is ready to be launched in the market,” added Duncan.