Yesterday, the International Securities Lending Association (ISLA) announced it appointed Ashurst to perform a preliminary legal analysis on its Global Master Securities Lending Agreement (GMSLA) in the context of digital assets. Recent events, including the Celsius bankruptcy, have highlighted several legal gray areas regarding the title to digital assets, especially when pledged as security.
The Ashurst work will explore title transfer and security interest over pledged collateral. In terms of digital assets, ISLA said the focus is on tokenized traditional assets, native digital securities and forms of digital cash. This doesn’t appear to include cryptocurrencies, but we’ve asked for clarification, as this is the area with the most pitfalls. And much of the rest of this article focuses on crypto issues.
“The appointment of Ashurst to help chart our way through this landscape, ensures that the GMSLA agreements published by ISLA and used for securities lending activity globally are able to support our membership’s ability to leverage these new opportunities,” said David Shone, Director of Market Infrastructure & Technology at ISLA.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
