Angel Oak and Brightvine announce world’s first blockchain-powered community bank subordinated to debt securitization
Angel Oak Capital Advisors securitization is the first to use the Brightvine portal to bring new efficiencies to the institutional credit market
SAN FRANCISCO and ATLANTA, 11 August 2022 /PRNewswire/ — Brightvinea blockchain-powered fixed-income platform that connects high-quality, real-value issuers with digital investors, and Angel Oak Capital Advisorsa leader in structured credit investment solutions, today announced the successful issuance of the first ever bank loan issuance leveraging blockchain technology with BFNS 2022-1.
BFNS 2022-1, a $147.55 million securitization of subordinated debt from community banks across the United States issued by Angel Oak, Brightvine leverages Portal, a secure management platform for conducting primary offerings of digital assets via blockchain, to easily coordinate documentation and loan information between parties and increase efficiency in the securitization and due diligence processes. The issuance represents the first result of the collaboration between Brightvine and Angel Oak Ventures announced in Q2 2022.
“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 are excited to be involved in bringing this new blockchain-powered debt securitization product to market” said Joe Vellanikaran, CEO of Brightvine. “Angel Oak is known for continually advancing its technologies and bringing new, innovative products to a demanding market, and we are proud to have the Brightvine portal be a key element of that innovation.”
As the first transaction of its kind to use distributed ledger technology, BFNS 2022-1 demonstrates the flexibility of Brightvine’s technology beyond mortgages – an area they continue to focus on – while demonstrating broader applicability across the interest rate space.
“The Brightvine portal gives us quick access to all the latest blockchain-validated information related to each note, all in one place, which we see as a huge driver of efficiency for our team, our investors and our securitization process going forward,” said Johannes PalssonSenior Portfolio Manager for Angel Oak Capital Advisors.
BFNS 2022-1 is Angel Oak’s third community bank subprime debt securitization since 2018, and the senior tranche received an Aa3 rating from Moody’s. The securitization consists of 31 issuers spread over 20 states, all with under 10 billion dollars in assets. Angel Oak has extensive experience analyzing community bank debt, using its proprietary BankSURFTM model for assessing the credit quality of US banks through its own database.
“We are encouraged by the success of this deal and the industry’s receptivity to a new era in capital raising,” said Sreeni Prabhu, Co-CEO and Managing Partner at Angel Oak. “We will continue to explore ways to leverage the efficiency of blockchain and create value for our investors.”
Angel Oak and Brightvine will continue to collaborate on ways to use the blockchain to introduce immediate benefits to fixed income securitizations. The goal is to leverage blockchain technology to provide easier auditing, validated real-time data across parties, faster due diligence, privacy and security controls, and better transparency for all parties involved.
About Brightvine
Brightvine, a blockchain-powered platform building a new financial infrastructure, is on a mission to expand access and expand wealth by enabling issuers of high-quality, real-world assets to forge new connections with today’s forward-thinking digital investors. By utilizing the latest Web3 technologies, Brightvine opens up new access to the capital markets and increases liquidity for mortgages and interest products. Brightvine is supported by strategic investors from the financial industry and is headquartered in San Francisco with employees located throughout the United States
Learn more at www.brightvine.com; to set up a press interview with the CEO of Brightvine Joe VellanikaranPlease do get in touch [email protected].
About Angel Oak Capital Advisors, LLC
Angel Oak Capital Advisors is an investment management firm focused on providing compelling fixed income investment solutions for its clients. Backed by a value-driven approach, Angel Oak Capital Advisors seeks to deliver attractive, risk-adjusted returns through a combination of stable current earnings and price appreciation. The experienced investment team seeks the best opportunities in fixed income, specializing in mortgage-backed securities and other areas of structured credit.
For more information, please visit www.angeloakcapital.com or contact [email protected].
Disclaimers
Brightvine is not a FINRA member broker-dealer. For any activities indicated that may require FINRA membership, Brightvine does not conduct such activities until it has obtained FINRA’s approval as a broker-dealer, generally, and for such activities, specifically.
Media contact:
[email protected]
SOURCE Brightvine
