Republic, the US-based private investment firm operating the Republic investment platform, will invest $5.25 million in digital asset broker-dealer INX (INXDF), valuing the company at a $50 million pre-money valuation.
This investment will grant Republic a roughly 9.5% ownership stake in New York-based INX. The US fintech company has also signed a preliminary agreement, which is not legally binding, to acquire the entire equity at a valuation of $120 million by the third quarter of this year. The initial transaction is anticipated to be finalized within 60 days, pending regulatory approval.
Simultaneously, INX and Republic have forged a collaboration agreement that reportedly aims to enhance the scope and capabilities of tokenization infrastructure, as well as broaden the availability of digital assets for investors across the globe.
“Our goal is to nurture and grow the global token economy by establishing the necessary infrastructure to not only support its operations but to also curate an investment experience that excites investors from all over the world,” said Shy Datika, CEO of INX. “Through our collaboration with Republic as a strategic investor, we are creating a fertile environment for both traditional and digital assets to thrive.”
“This investment signifies the dawn of a new era in finance,” said Kendrick Nguyen, CEO of Republic. “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.”
Through a strategic combination of their expertise and resources in both traditional finance (TradFi) and decentralized finance (DeFi), Republic and INX are set to introduce an array of compliant solutions. These solutions will cater to both primary and secondary markets, while simultaneously constructing the necessary infrastructure tailored to the needs of a thriving digital economy and its retail-focused requirements.
INX will also provide Republic’s portfolio of companies with tokenized asset services, encompassing security tokens and tokenized shares. These assets will be made available for secondary market trading on the INX ATS, a trading platform that operates around the clock, 365 days a year.
Furthermore, INX’s trading and conversion solutions for cryptocurrency assets, such as Bitcoin, Ethereum, and stablecoins, will be integrated into the Republic ecosystem.
