The securitisation pool, structured in accordance with Luxembourg’s securitisation laws, is collateralised by a diverse portfolio of French working capital assets sourced from Karmen, a fintech lender specialising in instantaneous loans and working capital for small and medium digital businesses in France, with a debt ceiling of $6 million.
When utilising the platform, a Luxembourg special purpose vehicle (SPV) will finance various underlying real-world assets such as assets originated by Karmen and a note issuance by a Fasanara securitisation SPV.
The real-world assets will then be used as collateral for a token issuance by the Luxembourg SPV to accredited investors in the UK and the U.S.
The cross-practice team advising on the deal was led by partner Nick Stainthorpe with support from partner Brett Hillis, senior associate Mehrnaz Afshar and senior associate Ray-Shio Ho. U.S. regulatory advice was provided by partners Ramsey Hanna, Mark Bini, and counsels Celisa Morin and Will Atherton.
Stainthorpe said: “Reed Smith’s engagement in this first of its kind private credit USDC lending pool underlines the firm’s market leading capabilities in the digital asset space.”
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