Republic to invest more than 700 million yen in INX
INX, which provides a trading platform for digital securities and crypto assets (virtual currencies), has collaborated with financial company Republic to build a blockchain-based infrastructure and asset tokens for primary and secondary markets. announced that it will proceed with
Republic will invest approximately ¥750 million ($5.25 million) in INX. The Republic valued INX at a pre-money value of around ¥7.1 billion ($50 million).
In the transaction, Republic will own approximately 9.5% of INX’s outstanding shares. The two companies also plan to consider an agreement for Republic to acquire 100% of INX’s common stock at a valuation of up to approximately ¥17.1 billion ($120 million).
INX CEO Shai Datika explained:
Our goal is to grow the global token economy by building the necessary infrastructure. In addition to supporting the operation of the token economy, we would like to develop an investment experience that will please investors around the world.
Working with Republic as a strategic investor, we will create an environment for the growth of both traditional and digital assets.
By combining expertise and resources in both TradFi (traditional finance) and DeFi (decentralized finance), the two companies will work together to expand the primary market (where assets are issued and raised) and the secondary market (where investors It plans to introduce a wide range of regulated solutions for both the buy and sell markets.
What is DeFi (decentralized finance)?
Refers to financial services or systems that utilize blockchain and are performed in the absence of a central administrator. Abbreviation for “Decentralized Finance.” DeFi financial services include stablecoin issuance, currency lending, and cryptocurrency exchanges. Many platforms use the Ethereum blockchain.
Integration of virtual currency trading system
Under the cooperation agreement, INX and Republic will mainly:
- INX provides asset tokenization services such as security tokens and tokenized equities to Republic’s corporate portfolio. List those tokens for the secondary market on the INX ATS (Alternative Exchange System) which is available 24/7.
- Integrate INX’ Bitcoin (BTC), Ethereum (ETH), stablecoin and other cryptocurrency trading solutions into Republic’s ecosystem.
- Integrated Republic’s FX broker-dealer capabilities into the INX platform.
- Integrate INX trading platform with Republic wallet.
Founded in 2016, Republic is based in New York. It operates a platform that can invest in startups, virtual currencies, real estate, art, etc., and has also established a blockchain advisory service and a private capital department.
Backed by major financial companies such as Morgan Stanley, it has a portfolio of over 1,500 companies and nearly 3 million users from over 100 countries. In addition to the United States, it also operates in the United Kingdom, United Arab Emirates (UAE), South Korea and Singapore.
What is a security token
Security tokens are “tokenize securities and exchange them on the blockchain”. Securities must prove the assets they hold, and based on the fact that their value is secured by legal currency, etc., security tokens can be rephrased as “stocks, bonds, etc. managed on the blockchain”. be done.