While market participants continue to sort through a broad array of applications for distributed ledger technology (DLT), there have been a significant number of issuances of debt securities relying on permissioned blockchains. During this session, we provide a brief overview of the technology and of smart contracts and discuss the concerns that prompt frequent issuers of debt securities to consider blockchain debt issuances. For example, many frequent issuers seek to reduce transaction costs, improve their access to funding, automate risk management, and reduce operational risks. Use of DLT addresses many of these objectives. Finally, we discuss the types of offerings that may be most amenable to the use of DLT and the legal impediments to broader adoption for debt issuances.
Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.