Document Type
Article
Publication Date
5-2023
Journal Title
Boston University Law Review
ISSN
0006-8047
Abstract
Blockchain technology, cryptocurrencies, stablecoins and non-fungible tokens (NFTs) continue to invade financial markets. Whether through partnerships between financial institutions and tech firms or through in-house initiatives at some of the nation’s largest banks, blockchain-based products, services, and transactional structures are a major point of interest. In a recent work by Professor Steven Schwarcz, the growing NFT market is analyzed using the traditional tools of structured finance. Creating a new conceptual model called non-cash-flow monetizations, Professor Schwarcz reveals the risks to investors and markets, if the tokenization of non-traditional and largely illiquid assets proliferates. Having identified the potential harms, he offers a package of regulatory solutions grounded in public law frameworks, which might mitigate, though not completely eliminate, these potential downsides. In this Essay, we review Schwarcz’s Article and highlight how its insights advance the understanding of novel blockchain-based transactions and their disruption of the existing financial landscape. Additionally, we provide an analysis of the private law dimension of non-cash flow monetizations—a perspective we believe is absent from much of the public discourse and relevant academic literature.
First Page
1005
Last Page
1023
Num Pages
19
Volume Number
103
Issue Number
4
Publisher
Boston University School of Law
Recommended Citation
Christopher K. Odinet & Andrea Tosato,
The Intersection of NFTs and Structured Finance,
103
B.U. L. Rev.
1005
(2023).
Available at:
https://scholarship.law.tamu.edu/facscholar/2074
File Type
Included in
Banking and Finance Law Commons, Commercial Law Commons, Contracts Commons, Internet Law Commons, Science and Technology Law Commons