Angel Oak Capital Advisors, Brightvine issue first blockchain-powered securitization

“Our partnership with Angel Oak is based on our shared goal of fully realizing the potential of distributed ledger technology to increase efficiency and transparency throughout the securitization process, and we’re excited to be involved in bringing this new blockchain-powered debt securitization product to market,” said Brightvine CEO Joe Vellanikaran. “Angel Oak is known for continuously advancing their technologies and bringing new, innovative products to a demanding market, and we are proud to have the Brightvine Portal be a key element in this innovation.”

“The Brightvine Portal gives us quick access to all of the latest blockchain-validated information associated with each note, all in one place. We see it as a huge driver of efficiency for our team, our investors and our securitization process going forward,” said Johannes Palsson, senior portfolio manager of Angel Oak Capital Advisors.

According to its release, BFNS 2022-1 is Angel Oak’s third community bank sub-debt securitization since 2018, and the senior tranche received an Aa3 rating from Moody’s. The securitization comprises 31 issuers across 20 states with under $10 billion in assets.

Sreeni Prabhu, co-CEO and managing partner at Angel Oak, said they were “encouraged by the success of this deal” and will “continue to explore ways to leverage the efficiencies of blockchain.”

The company said the goal is to leverage blockchain technology to provide easier auditing, validated real-time data across parties, faster diligence, privacy and security controls, and better transparency for all parties involved.