Liti Capital: Swiss Company Tokenizes Litigation Financing

With most areas of finance exploring tokenization, it was only a matter of time before somebody applied it to the courts.

Swiss litigation finance fund Liti Capital is expected to soon launch the LITI token, as an asset-backed equity token. That backing comes from ongoing court cases, which Liti Capital assesses for their likelihood of victory and level of settlement with a basket of tools including artificial intelligence. They fund the cases they take on and hire lawyers.

Liti Capital has raised $12 million in cash and litigation assets from private investors and owns a share of three cases valued in excess of $200 million.

“We wanted to find a way to get everyone involved,” said Jonas Rey, co-founder and managing director of Liti Capital, “But how the financial markets are structured all but prevent that. The blockchain finally gave us the answer we were looking for.” 

The LITI token represents a company share under Swiss law. If the user proves accreditation and passes KYC, they receive dividends, while the unaccredited ones may obtain wrapped tokens (wLITI). LITI holders receive 80 per cent of profits from successful court cases and have voting rights with Liti Capital. Holders of wLITI can swap 5,000 of them for one LITI under the previously stated requirements and receive wLITI as a reward depending on how long they stake. Users may also provide liquidity to the USDC/wLITI token pair on decentralized exchanges.

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