Bitfinex Securities, a tokenised securities platform, is set to launch a £100 listing to provide litigation financing for claims related to mis-sold car finance.

A Financial Conduct Authority review in January 2024 found that certain historic UK Personal Contract Purchase (PCP) sales practices were unlawful, particularly involving discretionary commission.

Investors in the token – dubbed Titan2 – will receive a share of the claim recovery proceeds, split proportionately between investors.

The issuance has a maturity date of up to three years and will be managed by a private Luxembourg-based special purpose vehicle (SPV). It will support the claims recovery process pursued by a UK-based law firm on behalf of claimants.

Read more: What is P2P car finance?

Bitfinex is also issuing a £5m listing, Titan1, that will invest in subordinate debt issued by a UK-based credit union.

Titan1 will provide investors with a 20 per cent annual dividend, net of fees, paid quarterly. The dividend will rise after five years if the subordinate debt has not been fully redeemed by the credit union.

As the first tokenised equity issuances on the platform, both listings will be made available as tradeable tokens via Bitfinex Securities’ secondary market. Participation will be limited to corporate or professional investors, or individuals with at least $100,000 (£73,000) or equivalent to invest.

Specialist asset infrastructure provider Ctrl Alt has issued both tokens, which are regulated by the Astana Financial Services Authority, based in Kazakhstan.

As tokenised assets, investors have access to real-time settlement, continual trading and can take self-custody their assets rather than use a third party.

Read more: Apollo’s tokenised private credit fund hits $100m

“Bitfinex Securities is excited to collaborate with Ctrl Alt on these innovative listings, which will also mark the first tokenised equity issuance to be listed on our platform,” said Jesse Knutson, head of operations at Bitfinex Securities.

“The respective listings offer investors an attractive return in combination with the opportunity to diversify their existing portfolios with exposure to digital assets. These listings continue to represent significant steps forward in financial technology and modernising capital markets, and Bitfinex Securities is proud to continue supporting issuers to raise capital in a cost-effective, efficient and secure manner.”

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