Brightvine announce $147 million securitisation of subordinated debt

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Blockchain – The mysterious and enticing technology on which bitcoin, and many other cryptocurrencies, are built. As our industry continues to grow, there are more and more applications in this new form of technology, which was invented by Satoshi Nakamoto when he wrote the bitcoin whitepaper in 2008.

Today I interview Joe Velanikaran, CEO of Brightwin, on one of those applications. Brightwine is a blockchain-powered fixed income platform that connects issuers of high-quality, real-world assets with digital investors.

Back in March, I interviewed Joe on his announcement of a partnership with Angel Oak Capital Advisors, the technology venture arm of Angel Oak Companies, which deals in innovative mortgage solutions. The goal of the partnership was to leverage BrightWin’s platform for investors to explore new avenues of investment.

Today, they have announced the first result of this partnership, the first issuance of bank subordinated debt that leverages blockchain technology, called BFNS 2022-1 – a $147.55 million securitization of subordinated debt.

Naturally, I had some questions.

CoinJournal (CJ): Can you summarize how exactly this capital is being raised and whether the project being on the blockchain is an advantage for those who may be unfamiliar with your approach?

Joe Velanikaran (JV): In a typical securitization, the process of coordinating up-to-date documents and data among multiple participants is a manual and labor-intensive process. The Brightwine portal allows for instant verification of each document against the immutable record of the blockchain, ensuring that the documents being used are always accurate and up to date across all parties. The distributed ledger ensures that any time data points are updated, those changes are populated in real-time across all stakeholders.

chief Magistrate: We interviewed you on the partnership between Brightwin and Angel Oak when it was announced in the second quarter of this year. This is the first collaboration — did you see a delay in that as a result of transitioning to markets?

joint venture: Our partnership with Angel Oak is at the right time – we have been actively working with them since our last announcement to build out the Brightwine Portal to support their various asset classes that require the Portal, including more efficient securitization. Take full advantage of key features. Process, real-time data distribution across parties, and blockchain validated documents.

chief Magistrate: How much has the chaotic and downturn over the past few months affected this partnership in general?

joint venture: Despite any downside in the crypto markets, several large institutions have emerged as champions of blockchain technology in recent months. If anything, it makes more sense now than ever to use the best technologies to create the most secure, efficient and accurate financial infrastructure. We view our partnership with Angel Oak and the results of BFNS 2022-1 as the first of many exciting announcements in a long-term collaboration.

chief Magistrate: What are your views on the real estate market showing signs of moderation recently?

joint venture: We are hearing petitions from government agencies and other organizations for the private sector and to help the housing markets and that is what we want to do. Brightwine aims to increase liquidity for mortgage, fixed income and real estate by building a new technological infrastructure that can connect these markets to new forms of digital investors – whether rates go up or down, people still need mortgages. And our role is to help build capacity on the back-end of that financial infrastructure.

chief Magistrate: Do you believe that many crypto projects will go under this cycle as they did last crypto winter?

joint venture: What we are seeing in the crypto market right now is a slight contraction and improvement as projects succeed (and fail) while traditional and cutting-edge companies alike are trying to prepare for the Web3 future. As we emerge from this crypto winter, the next big wave of companies and products will emerge too – and the winners will be the ones that bridge the gap between TradeFi and DeFi and create something new that will drive digital transformation to bring us into a truly decentralized future. make capable. ,

chief Magistrate: How does the Fed’s rate hike clearly affect mortgages, affecting this collaboration and business model going forward?

joint venture: With the Fed rising rates it makes it harder for people to afford loans, but the demand for housing and the need for mortgages isn’t going anywhere. We believe Brightwine’s efficiency and new demand can help drive these rates down over time in these markets.

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