The Republic platform's new feature will support users trading RWA tokens of non-public stocks like SpaceX

BlockBeats News, June 25th. According to The Wall Street Journal, the Republic platform announced that starting this week it will launch a digital "token" tied to the performance of non-publicly traded stock of Elon Musk's space company, SpaceX. This platform, dedicated to opening up to retail investors investment opportunities that were traditionally limited to the wealthy, also plans to expand the tokenization scope to well-known private enterprises such as OpenAI and Anthropic.

It is reported that Republic stated that its issuance is based on the 2012 Jumpstart Our Business Startups (JOBS) Act, which allows US private companies to raise up to $5 million from retail investors annually. The platform will act as the issuer, and the token is essentially a commitment: if SpaceX goes public or is acquired, holders will receive gains based on the increase in the stock price. Through an SEC-issued crowdfunding regulatory exemption license, Republic can sell such tokenized securities to retail investors. Nguyen emphasized that there is no need to obtain authorization from the target company, as the tokens represent securities issued by Republic.

The initial pricing of tokens for companies like SpaceX will be based on the secondary market trading price of private equity where accredited investors participate. If the target company goes public or is sold, Republic will need to pay the appreciation portion of the price to the token holders. Nguyen stated that the platform will hold the target securities or related derivatives, but token investors are not considered shareholders of the company.