Last week, Republic co-CEO Andrew Durgee visited CNBC to discuss their new “Mirror Tokens” – digital securities that track the price of a private firm’s stock. Republic recently announced it was offering retail investors access to invest in Elon Musk’s SpaceX (rSpaceX), the most successful private space firm that also provides satellite-based internet access.
In the ensuing days, Republic announced another round of Mirror Tokens. Plans are to continue to offer more.
Durgee defended their new product that provides retail access to securities based on well-known private firms as he was questioned about the degree of disclosure available for investors. He said they diligence every token offered. Currently, smaller investors are typically not allowed to invest in these firms due to discriminatory Accredited Investor rules. Under current rules, an investor must be worth over $1 million (not counting your primary residence) or earn over $200,000 a year ($300,000 if married). These rules do not take into consideration sophistication, which makes little sense.
Asked if this method of using the Reg CF security exemption to circumvent the Accredited Investor rules has been approved by the SEC, Durgee said they are having conversations with them, saying that the SEC is evaluating it.
Durgee noted that they are only offering securities in firms where they already have access to the shares (i.e., they already own them).
It is interesting that Durgee said they are going to make their money on their Secondary trading platform and not on the investment fees for Mirror Tokens. The fees are currently zero, which CNBC noted is better than investing in a mutual fund.
As Congress is working on changes to the definition of an Accredited Investor, a rule that has disenfranchised the masses from participating in some of the best investments ever, the discussion may soon be moot.
Still, the SEC could pump the brakes on the Mirror Token product, but as Republic has now listed other Mirror Token opportunities, it appears the SEC is viewing it as a benign innovation.
At the same time, OpenAI has publicly proclaimed it does not like platforms that are tokenizing their securities, recently stating on X:
“These “OpenAI tokens” are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval—we did not approve any transfer.”
The CNBC interview is available below.
These “OpenAI tokens” are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval—we did not approve any transfer.
Please be careful.
— OpenAI Newsroom (@OpenAINewsroom) July 2, 2025
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