Republic's Profit-Sharing Token on Avalanche: VC Dividends for Investors

• Republic Crypto to Launch Revenue-Sharing Tokenized Security on Avalanche Blockchain
• R/Note as Real-World Asset (RWA)
• Tokenization of Traditional Investments
• Avalanche Blockchain for RWAs
• Advantages of Digital Securities like R/Note
• Sale and Future Plans for R/Note

Republic Crypto to Launch Revenue-Sharing Tokenized Security on Avalanche Blockchain

The fintech startup, Republic Crypto, has disclosed its plans to launch its new revenue-sharing tokenized security on the Avalanche blockchain. The asset, known as R/Note, will serve as the medium through which Republic distributes stablecoin dividends to investors who have purchased a stake in the venture portfolio of the company. With every successful exit from an investment by Republic, holders will receive their pro rata share of up to 25% from the dividend pool.

R/Note as Real-World Asset (RWA)

R/Note, which is part of the increasing real-world asset (RWA) trend in crypto, is undeniably a security. This distinguishes it from the numerous other crypto tokens that assert otherwise. R/Note's design is intentional as it will dispense dividends from the proceeds of equity sales.

Tokenization of Traditional Investments

Tokenization, which involves translating traditional investments or RWAs such as bonds or private funds into token form on blockchains, is becoming a hot sector within the crypto industry. Even global banks are piloting this trillion-dollar opportunity. This differentiation means that R/Note must adhere to stricter rules regarding ownership and trading compared to most other blockchain-based tokens.

Avalanche Blockchain for RWAs

Andrew Durgee, head of Republic Crypto, stated that the Avalanche blockchain is ideally suited for RWAs due to its unique features, which are absent in other chains. It has the capacity to establish controllable subnets or highly adaptable side chains, optimized for regulatory rules associated with being a digital security. Other prominent players in the investment industry have also shown similar interest in Avalanche. For instance, J.P. Morgan recently tested a tokenized portfolio on a permissioned Avalanche subnet. Avalanche's (AVAX) token value has risen by approximately 40% in the past week.

Advantages of Digital Securities like R/Note

Durgee has also suggested that digital securities like R/Note have certain advantages over their off-chain counterparts. A case in point is the swift distribution of dividends from equity exits. It's almost impossible to directly send additional security in regular form. But with tokenization, this can occur instantaneously.

Sale and Future Plans for R/Note

Republic recently sold $30 million worth of R/Note in a closed public sale. Once the asset goes live on the Avalanche blockchain, the company plans to establish a secondary market. While tokenized securities aren't new to the crypto world, Republic maintains that its version is more accessible and thus, more viable than many previous options. This is due to Republic's unique whole stack structure for issuing and trading these assets in-house, rather than using counterparts with varying objectives and motivations.

According to Durgee, If you believe in a tokenized future, Republic is at the very top of that pyramid.

Edited by Jonathan Stoker