Republic Partners with INX on Tokenization, Trading – Invests $5.25 Million

Republic, the largest private investment marketplace in the world, has revealed a new partnership with digital securities platform INX (NEO: INXD, INXATS: INX, OTCQB: INXDF). INX is also a FINRA-regulated broker-dealer, ATS (alternative trading system), and transfer agent.

As part of the deal, Republic has invested $5.25 million in INX, taking a 9.5% equity stake in the firm at a pre-money valuation of $50 million.

At the same time, Republic and INX intend to enter into a non-binding term sheet, which could see Republic acquire 100% of INX common equity at a valuation of up to US$120 million – contingent upon undisclosed details.

INX is a digital security, or tokenization platform, that enables the primary issuance of securities as well as the ability to trade the issued securities.

Kendrick Nguyen, CEO of Republic, issued the following  statement in a public release:

“This investment signifies the dawn of a new era in finance. By integrating INX’s digital trading infrastructure for financial markets with Republic’s expertise in primary distribution, we are redefining the way capital is raised and empowering both institutional and retail investors globally.”

INX CEO Shy Datika said that Republic was a strategic investor, and they aim to create an environment for both traditional and digital assets to thrive.

“Our goal is to nurture and grow the global token economy by establishing the necessary infrastructure to not only support its operations but also to curate an investment experience that excites investors from all over the world.”

Republic has long expressed interest in facilitating the secondary trading of private securities but has yet to decide which path they will take. The investment in INX appears to embrace the digital asset future. Republic is also the owner of Seedrs, a top European crowdfunding platform, that operates one of the most effective secondary markets for private securities in Europe. Republic has global ambitions, and INX may be the path to streamline sales and trading in the US, Europe and Asia.

The collaboration is expected to include the following:

  • INX offering tokenized asset services (including but not limited to security tokens and tokenized shares) to Republic’s portfolio of companies and listing them for secondary market trading on the INX ATS, which is available 24/7/365
  • Integration of INX’s comprehensive, end-to-end trading and conversion solutions for cryptocurrency assets like Bitcoin, Ethereum, and stablecoins into the Republic ecosystem
  • integration of Republic’s FX broker-dealer capabilities into INX’s platform
  • listing of the Republic Note for trading on the INX ATS
  • integration of the INX trading platform with the Republic Wallet

While most market observers expect all securities to eventually become digital the market has been slow to materialize due to well-established norms and highly liquid public markets. As Republic is a top platform for the primary issuance of securities, the partnership could help further a more robust trading environment for INX.

In August 2019, INX filed a registration statement (Form F-1) for an initial public offering (IPO) seeking to sell 130,000,000 INX Tokens as digital securities. The company went on to sell digital securities and then to trade its shares on several marketplaces, including the Canadian NEO. At the close of the market today, INX posted a market valuation of CDN $57.8 million.

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