Tokenisation has emerged as one of the most discussed developments in structured finance, although practical implementation has come second to the enthusiasm surrounding distributed ledger technology (DLT).
Rather than representing a new asset class, tokenised securitisations are best understood as conventional securitisations in which one or more components of the transaction lifecycle are represented or executed digitally using blockchain infrastructure. For lawyers, structurers, arrangers, and trustees, the key question is not whether securitisation principles change, as they largely do not, but rather how digital infrastructure alters issuance, settlement, administration, and investor participation. Partner Ranajoy Basu and director Nathan Menon examine how tokenisation could modernise securitisation through digital issuance, faster settlement, and automation, while leaving its underlying legal architecture largely unchanged.
