Hogan Lovells was an associate sponsor of the Global ABS 2021 Conference held in London. Partners Sharon Lewis (Head of Financial Institutions Sector) and Michael Thomas (a partner in the financial services team), alongside Bryony Widdup (partner at DLA Piper) and Stefan Augustin (Co-Head of Structured Finance at ARC Ratings), discussed the role of blockchain and asset tokenisation on structured finance and securitisation transactions. We have summarised some of the key take-aways from the event.

While we still may be at an early stage of the evolution of blockchain for securitisation, blockchain along with smart contracts, promises to transform many activities in our securitisation industry. The question becomes not if but when, and when is now.

Blockchain has the potential to streamline processes, lower costs, increase transaction speed, enhance transparency and improve security, for all transaction participants, from issuer, to paying agent to investors, and for others such as auditors, third party opinion providers and rating agencies. Tokenisation has the potential to partially replace securitisation if not totally it.

What is blockchain and tokenisation?

How blockchain could benefit from structured finance

Some challenges to adoption

What's next?