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Republic, an investment startup based in New York, offers users an exhibition in SpaceX by issuing a “token” representation of its actions.
The company will start to sell digital tokens this week and possibly plan to extend the offer to other private companies such as Darlings of Artificial Intelligence Openai and Anthropic, as well as Stripe, X, Waymo, Epic Games and more. The Wall Street Journal pointed out the story for the first time on Wednesday.
“We are talking about the delivery of products to retail investors from which they were retained before,” said the CO-PDG of the Republic, Andrew Durgee, at CNBC. “The fact that retail investors cannot have pre-time spacex have always been crazy for us. Now, this will be attached to the rise in these pre-time companies. The companies that we target outside the door, we want to have a retail goal, or at least an important detail.”
In the world of cryptography, tokenization is the process of issuing digital representations on a blockchain network of stocks on the stock market, real assets or any other form of value. The tokenized asset holders do not have an outright property of the assets themselves.
This decision comes as the American cryptography industry is testing new regulatory limits under the pro-Crypto administration of President Donald Trump. Since he took office, the Securities and Exchange Commission quickly pushed to loosen the constraints left on the cryptography industry by the previous administration, ending a case of application against Coinbase; Close surveys on Robinhood Crypto, UNISWAP, Gemini and Consensys without action in application; reducing its crypto application unit; Declaring the pieces even are not titles and the launch of a crypto working group which holds a series of round tables on the regulation of cryptographic assets.
“If you take a step back and look at what the last four to eight years in space looked like, innovation has been very suffocated,” said Dungee. “The reality is that space was simply difficult to understand and consume. We have now reached a point where it has certainly become more pillar.”
“We left what was ultimately … just winds,” he added. “And now we are finally in a place at the industry level, where we really have rear winds and we have room to really innovate.”
Republic will allow investors to invest between $ 50 and $ 5,000 in tokens. As a general rule, those who wish to invest in private companies must comply with a minimum of more than $ 10,000 and must meet specific income or net value requirements. Actions of a private company can be exchanged by investors accredited in the secondary markets; REPUBLIC will initially be assessed SpaceX tokens according to the way the actions of the company occur there.
Tokenized investment capital is a new territory for regulators and underlying companies represented digitally. There are questions unanswered about the legality of the tokens, how the Republic will give financial information to investors if necessary and how the sale of private investments for retail investors could cause stress in the financial markets.
“We do not need the approval of a company to be able to make these types of offers, and I think there will be companies that will want more control over something like that,” said Dungee. “The reality is the structure we use, which has been built on the law of securities of the 1930s, in many cases, allows us the room for maneuver to give these types of offers. People will really start to wonder how they will approach some of these innovations, and how much they want to push this risk envelope.”
Financial institutions are increasingly interested in the tokenization of traditional assets due to the often praised advantages of blockchain technology: lower costs, faster settlement times, greater transparency concerning property and programmable performance and terms, as well as increased accessibility for retail and global scope.
The announcement comes approximately a week later Jamming said he was putting pressure on to approve the dry trade in token public stocks, which would give the crypto service provider an additional source of income and would put him in closer competition with brokerage houses like brokerage houses Robin And Etoro.
The Crypto Exchange competitor Kraken recently said that it would offer American stock tokens for 24/7 exchanges on unpertified markets abroad.
Blackrock CEO Larry Fink said he considered the “tokenization of each financial asset” as an important step in “the technological revolution on the financial markets”.
