LawCoin Completes World’s First Tokenization Of Litigation Finance Investment
PHILADELPHIA, PA — LawCoin Inc. (“LawCoin”), a legal fintech company, today announced the digital tokenization of ownership interests in LawCoin Investments, LLC (“LCI”), making it the world’s first tokenized litigation finance investment vehicle. LCI is LawCoin’s portfolio investment vehicle for investing in litigation finance opportunities and other legal claims. LawCoin is building a platform for investments in litigation and other legal claims, which is slated to launch in early 2020.
In partnership with ConsenSys Codefi, LawCoin digitized and created the LCI membership interests on the Ethereum blockchain. Codefi is a flexible and scalable product suite powering the blockchain operating system for commerce and finance, built to optimize business processes and payments, digitize financial instruments, and construct customized decentralized applications. Through the Codefi Assets platform, LawCoin was able to create tokens that represent ownership interests in LCI. Subsequent to the initial tokenization, LCI intends to issue security tokens to provide institutional and accredited investors with broad exposure to this uncorrelated asset class. Because lawsuits generally less correlated with financial markets, they’re an effective hedge against recession.
LawCoin CEO and Co-Founder Noah Axler said, “We are proud to have reached the important milestone of tokenizing our portfolio investment and being the first to use tokenization in litigation finance. LawCoin has taken the initial step in introducing digital assets to our industry and we expect to see continued adoption of our model, as investors and issuers recognize the increased efficiency and liquidity that tokenization provides.”
Noah Axler continued, “Now that we have tokenized LCI, we will continue to look for quality assets to add to the fund’s portfolio. We are also currently working to tokenize individual litigation finance deals through our network of investors and, starting next year with the expected launch of our platform, LawCoin intends to offer tokenized litigation finance opportunities to an even wider range of institutional and accredited investors. Working with a great partner in ConsenSys, we are helping to transform litigation finance and contribute to continued market growth.”
This announcement comes after LCI completed an investment in a multi-million dollar commercial litigation matter, its first individual case funding.
“Because of open-source programmable blockchain technology, and the power of tokenization, we’ve begun to witness profound changes in how easy it is for enterprises and entrepreneurs to create new and more accessible investment models for advanced use cases like litigation finance. One of the reasons we built Codefi was to democratize access to capital, and it’s very exciting to help LawCoin do exactly that in an exciting industry like litigation finance,” said Patrick Berarducci, Global Fintech Co-Head at ConsenSys.
Litigation finance is the practice of providing capital to a party involved in litigation in return for a portion of any financial recovery from the lawsuit. In the last several years, the United States litigation finance market has seen significant growth, with some estimates placing its size in the multi-billion dollar range annually. It has become a mainstream funding solution that helps equalize access to the legal system.
Tokenization of a litigation finance investment is the process of issuing digital membership interests in a holding company that owns the litigation finance asset. More generally, the digitized tokens can be structured to represent a variety of ownership and economic interests in an underlying asset, such as equity in a company that owns the asset, an interest in debt secured by future revenues, or a stream of income based on cash flows from the asset.
LawCoin is the world’s first fintech company for tokenized investment in litigation finance and social justice crowdfunding. By utilizing blockchain technology and crowdfunding principles to connect investors with stakeholders in legal disputes, LawCoin increases liquidity for a high growth market and provides access to an uncorrelated asset class historically unavailable to the investing public.
ConsenSys is one of the world’s largest blockchain companies, building the tools, infrastructure, and applications that power the Ethereum network. Since 2014, we have tokenized billions of dollars in digital assets, including a wide range of consumer products, stablecoins, real estate, and financial instruments, powering tens of billions of dollars in blockchain-based transactions. Through our applications, we have served hundreds of thousands of users, ranging from central banks and major financial institutions to developers and retail users of the Ethereum mainnet. As the official blockchain partner of the EU Blockchain Observatory and Forum, and as a founding member of Global Digital Finance and The Brooklyn Project, ConsenSys is equipped to navigate and deploy blockchain-based software in the most complex of regulatory environments.
No Offer, Solicitation, Investment Advice or Recommendations
This release is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security or token, nor does it constitute an offer to provide investment advisory or other services by LawCoin Inc., LawCoin Investments LLC, and ConsenSys, or any of their respective affiliates, subsidiaries, officers, directors or employees. No reference to any specific security or token constitutes a recommendation to buy, sell or hold that security or token or any other security or token. Nothing in this release shall be considered a solicitation or offer to buy or sell any security, token, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this release constitutes investment advice or offers any opinion with respect to the suitability of any security or token, and the views expressed in this release should not be taken as advice to buy, sell or hold any security or token. In preparing the information contained in this release, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this release were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible correction.
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