Republic, a neo-investment and technology firm, is planning to issue a blockchain-based security token called the Republic Note. This digital asset will pay dividends to retail investors from profits generated across its investment portfolio. The Republic Note will be launched on the Avalanche blockchain and will accrue profits from Republic’s investment portfolio and services. Republic has already attracted over three million investors and has deployed over $2.6 billion into various ventures, including Web3 firms like Avalanche, DappRadar, and Dapper Labs.
A presale round for the Republic Note has already attracted over $30 million from individual and institutional investors. Dividends from the note will be paid out in USD Coin (USDC) to retail investors once the dividend pool reaches a threshold of $2 million. Republic has also developed a proprietary Web3 self-custodial, cross-chain wallet for distributing dividends to Republic Note holders. The notes will not be tradeable digital assets like other cryptocurrency tokens and are set to be listed on select securities exchanges in the next two to three months.
Andrew Durgee, the president of Republic, highlighted the selection of Avalanche as its blockchain platform of choice, driven by the company’s ambition to reach and scale a broad audience of Web3 native investors. The Republic Note has been in development since 2016, with an audit of the digital securities offering conducted by Quantstamp. The price of a single Republic Note is listed at $0.36, with between 330 and 350 million Republic Notes circulating at launch and a total supply capped at 800 million.
Other players in the cryptocurrency ecosystem have also launched tokenized securities offerings. For example, blockchain technology firm Blockstream launched the Blockstream ASIC Note in August 2023, allowing investors to gain exposure to digital securities paid for in Bitcoin (BTC) that will be used to buy ASIC mining hardware at scale. Blockstream plans to store and sell the hardware back to the market as demand for ASIC miners picks up into 2024.