Developing Disclosures - Risk Factors And Disclosures For Blockchain-Based Instruments And Digital Asset Issuances

The International Capital Markets Association (ICMA), the membership organisation which promotes the development of the international capital and securities markets, recently published a report by a working group with results of a review focused on offering documents for issuances of fixed income securities constituted using distributed ledger technology (DLT, and such instruments referred to as DLT-based instruments)¹

The review, carried out by the DLT Bonds Legal Subgroup, analysed recent offering documents and final terms for issuances of DLT-based debt instruments with a view to identifying, commonalities and areas of consensus as to the scope and nature of risk factors which may assist issuers and underwriters (although the Subgroup did not include recommendations for form of model documentation). The review involved consideration of around a dozen offering documents and final terms used for the issuance of DLT-based instruments, of which seven are publicly