Neo-investment and tech firm Republic unveiled plans to utilize Avalanche blockchain in issuing its profit-sharing investment notes. The firm is tapping Avalanche blockchain to automatically distribute the profits to the respective holders’ wallets.
The Neo-investment firm targets issuing a blockchain-based security token to remit dividends to retail investors. It taps the blockchain to distribute the profits realized from its broad investment portfolio.
Republic to Utilize Avalanche Blockchain to Tokenize Profit-Sharing Investment Note
The firm’s spokesperson indicated that the Republic Note involves a profit-sharing crypto asset it plans to unveil on the Avalanche blockchain. The executive revealed that the scheduled profits are realized from the multiple investment portfolios and services.
A recent update by the firm confirmed that Republic investors exceeded three million. The neo-investment firm further disclosed that its investment estimates over $2.6 billion spread across multiple ventures. The firm invests across various Web3 firms, including Dapper Labs, DappRadar, and Avalanche.
Republic confirmed executing a presale round for its investment note dubbed Republic Note. It confirmed realizing over $30 million from individual and institutional investors. Republic targets settling the dividends from the profit-sharing investment note via USD Coin. However, the retail investors will receive their dues through automatic distribution whenever the dividend pool hits the $2 million threshold.
Republic confirmed creating a proprietary Web3-based self-custodial and cross-chain wallet it will leverage for distributing dividends to the Note holders. The tech firm iterated that the notes constitute tradable digital assets holding similar to other digital asset tokens. The neo-investment firm plans to list the Note on select securities exchanges by February 2024.
Republic president Andrew Durgee emphasized that settling on Avalanche blockchain is primarily influenced by the firm’s ambition to scale the Web3 audience comprising native investors.
Durgee demonstrated that selecting Avalanche delivers beyond the network’s scale, speed, and strength. In particular, it solidifies the Republic-Ava Labs partnership created upon the shared financial markets’ inclusivity.
Durgee recounted that the Republic Note is a work in progress since its unveiling seven years ago as a white paper publication. The president confirmed the audit completion by the digital securities offering.
A review of Republic preparedness shows the website hosting the upcoming digital security prices the Note at $0.36. Also, the firm indicated that it would release 330 to 350 million Notes during its unveiling. Nonetheless, the Republic Note supply would rise to 800 million.
The move by Republic to unveil a profit-sharing investment note on Avalanche mirrors the move by other crypto ecosystem players that recently unveiled their tokenized securities offerings to their investors.
Blockstream Tokenizes Note to Acquire ASIC Mining Equipment
Blockchain tech company Blockstream had in August 2023 confirmed unveiling the Blockstream ASIC Note. The tokenized Note enables investors to realize the exposure to the digital securities. The settlement will involve Bitcoin used later to acquire ASIC mining hardware.
Blockstream emphasized its intention to store and dispose of hardware to the market when the ASIC miners gain in 2024.
The rush towards tokenization is evident, with three leading banks, including JPMorgan, Citi, and Bank of America, actively pursuing real-world asset (RWA) tokenization. The banks are utilizing Avalanche blockchain and Subnets for desired blockchain solutions.
Avalanche Chosen Among Interoperable Blockchain Networks in JPMorgan Tokenization Project
JPMorgan’s interest in tokenization is evident in its blockchain arm Onyx, a collaboration with several industry startups. The partnership targets creating proof of concept (POC) to demonstrate how tokenization could improve financial asset management.
The POC tests were executed under the Project Guardian by the Singapore Monetary Authority. It deployed a unique design to facilitate fund managers in tokenizing the portfolios on several chosen blockchains. JPMorgan stated that wealth managers could leverage the POC in purchasing and rebalancing their positions across various interoperable blockchain networks.
The statement clarified that the POC tests involved several blockchain stacks, including Avalanche, Provenance Blockchain, and Onyx Digital Assets by JPMorgan. The POC featured the contribution of the cross-chain communication platform Axelar alongside Oasis Pro behind issuance-slash trading.
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