Heimdall, a provider of business tokenization solutions, has partnered with OPNX to launch a bankruptcy tokenization product. This product offers an alternative to the lengthy bankruptcy administration process that can take several years to resolve. It enables users with funds frozen on defunct platforms to access liquidity. Celsius, a cryptocurrency platform, was the first to be selected for tokenization due to its “completely unredacted database,” according to Heimdall CEO Vishal Shah.

On May 24, OPNX co-founder Mark Lamb and Shah announced that Celsius users could tokenize their bankruptcy claims soon after May 29. Shah explained that their objective is to introduce a tech layer and digitize the antiquated bankruptcy process. However, this digitization requires data, and Celsius was chosen first due to the accessibility of the company’s database of information.

Shah stated that out of the many crypto bankruptcies that occurred in 2022, Celsius data was readily available, making the digitization process “very easy” to deal with. He added that Celsius has a completely unredacted database, making it easy to mine information, parse it in the way needed, and work towards a seamless validation. Additionally, Shah said that Celsius has approximately 600,000 creditors, with 85% categorized as “convenience class,” making it a “hand in glove” choice to go with first.

Bankruptcy Tokenization Product as an Alternative to Lengthy Bankruptcy Process

The bankruptcy tokenization product offered by Heimdall and OPNX provides an alternative to the lengthy bankruptcy administration process that can take many years to resolve. For example, creditors of Mt. Gox have yet to receive payment eight years after the platform went under. The situation is made more frustrating by continual changes in the repayment schedule.

The tokenization product offers a solution for users with funds frozen on defunct platforms to access liquidity. By digitizing the antiquated bankruptcy process, Heimdall and OPNX aim to introduce a tech layer and make the process seamless. The product is particularly useful for convenience class creditors, as it eases the administrative burden on the court and treats claims differently based on their size and type.

Digitization of Bankruptcy Process Requires Data

To digitize the antiquated bankruptcy process, data is required. Heimdall CEO Vishal Shah stated that Celsius was chosen first due to its completely unredacted database, which made it easy to mine information, parse it in the way needed, and work towards a seamless validation. While many crypto bankruptcies occurred in 2022, Celsius data was readily available, making the digitization process “very easy” to deal with.

Heimdall and OPNX aim to introduce a tech layer that will digitize the bankruptcy process and make it more seamless. The bankruptcy tokenization product provides an alternative to the lengthy bankruptcy administration process, enabling users with funds frozen on defunct platforms to access liquidity. By treating claims differently based on their size and type, the administrative burden on the court is eased, making the process more efficient.

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