HOOD

Republic to List Dividend-Paying Digital Security on INX Exchange

New York-based investment fintech Republic will list its Avalanche-based digital security, Republic Note, on the U.S.-regulated crypto exchange INX. Backed by a private equity portfolio of tech and Web3 heavyweights, including SpaceX, Robinhood (NASDAQ:HOOD), Dapper Labs, and Avalanche (AVAX-USD), the profit-sharing digital asset Republic Note will be listed on INX’s global trading platform INX.One on December 6, 2023.

Tokenized real-world assets (RWAs in blockchain terms) have become the latest trend in the crypto space, with RWA-related decentralized finance platforms jumping to over $5 billion in total value locked in a year, according to DefiLlama charts. 

After raising $200 million from finance bigwigs like Valor Equity Partners, Galaxy Interactive, Morgan Stanley (NYSE:MS), and AngelList, Republic aims to introduce asset tokenization to the multi-trillion-dollar private equity industry with a digital security that will pay dividends to holders.

With over 3 million members across 150 countries around the world, Republic has poured more than $2.6 billion into privately held ventures since 2016. So, it’s safe to say that the company knows its way around the private equity market. 

Dividend-Sharing Asset for End Users

The launch of Republic Note aims to unlock access to its venture portfolio -- which has over 750 private companies and assets -- for everyday users. The digital asset removes the necessity of traditional accreditation while lowering the barrier for investors by keeping the price of Note at accessible levels.

The digital asset recently closed a $30 million presale with the price of $0.36 per Note, seeing participation from individual investors as well as the likes of Binance (BNB-USD), Naspers (OTC:NAPRF), and Avalanche Foundation’s Vista program. The maximum supply of Republic Notes in circulation will be capped at 800 million. 

Thanks to the global availability of blockchain-based tokens, users from anywhere in the world can own a fraction of a Republic Note. The company also launched a non-custodial Republic Wallet to store Republic Notes. By holding Notes in their wallets, users will be eligible for profit distributions each time the Republic’s Dividend Pool reaches a $2 million threshold. Republic plans to distribute profits to users’ wallets via the USD Coin (USDC-USD) stablecoin. 

The listing on INX.One marks the launch of the secondary market for the Republic Note, opening broader access to the dividend-sharing digital asset by allowing users to buy or sell it on a regulated crypto exchange. “We believe this is the first time a digital asset backed by such a diverse portfolio of private ventures has been made available to retail investors,” said Republic co-founder and CEO Kendrick Nguyen.

Asset tokenization efforts continue to ramp up as the digital asset market is looking for fresh sources for capital inflow. The launch of Republic Notes demonstrates there is a huge potential in digitizing traditional asset markets. By enabling 24/7 global availability, easy tradability, and true digital ownership, blockchain technologies are set to disrupt the private equity market through tokenization.

Disclosure

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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