Litigation funding has a new landscape to conquer—cryptocurrency. Liti Capital is the first legal funding company to tokenize shares. This creates an equity token that is asset-backed—which is unusual in blockchain. Using tokens allows a wider swath of investors to participate, as the entry threshold is lowered.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
Editor’s Note– a previous version of this article stated that Liti Capital is the first to tokenize litigation finance. In fact, LawCoin Inc first tokenized litigation finance several years ago. We regret the error.
Litigation funding has a new landscape to conquer—cryptocurrency. Liti Capital has tokenized litigation finance shares, creating an equity token that is asset-backed—which is unusual in blockchain. Using tokens allows a wider swath of investors to participate, as the entry threshold is lowered.
Korea Times recently spoke to Liti Capital’s co-founder, managing director, and head of strategy, Jonas Ray, about how crypto and litigation funding coexist. Ray begins by introducing the Liti Capital team. It includes those with litigation finance experience, of course. But also those who specialize in blockchain, financial tech startups, intelligence, and enforcement.
For the most part, investing in litigation finance is something only institutional and well-heeled investors can take part in. By using blockchain and tokens, anyone with a computer or smartphone can utilize investment tools that simply weren’t available previously. In a sense, a litigation funding token accomplishes the same goal for investment that funding does for pursuing legal cases—it increases access for those who need it most.
Getting involved in Liti Capital can be as simple as buying a LITI token—which is a share of Liti Capital SA. In addition to occasional dividends, shares afford owners voting rights and participation in Liti’s annual general assembly meeting. Or wLITI tokens can be bought. These do not offer voting or participation rights, but wLITI tokens are fully tradable.
Ray also explains that between 5-10% of company profits will be dedicated to finding and stopping crypto scams. Liti encourages community members or LITI holders who have been victims of crypto scams to inform Liti. All of this offers more flexibility and perks than traditional investing could—particularly in regard to litigation funding.
Currently, asset-backed equity tokens are rare in the crypto space. Liti offers a tangible way to make a difference using small blockchain-based investments—while supporting endeavors to make crypto and blockchain safer for all users.
