In an effort to establish a robust tokenization platform, Republic has finalized its acquisition of the trading platform INX for $60 million.
The competition in asset tokenization is intensifying. On April 3, the private investment firm Republic disclosed its agreement to acquire INX Digital Company for a valuation of $60 million. This acquisition will empower Republic to enhance its offerings in tokenized assets.
The terms of the deal state that Republic will purchase all INX common shares it does not already own for $54.8 million. At the time of the announcement, INX’s market capitalization was approximately $8.25 million, which means shareholders received a remarkable 631% premium on their stock value.
Out of the total, $18.8 million will be allocated to rollover shareholders, who will convert some of their shares into equity in Republic. Non-rollover shareholders will receive an upfront payment of $20 million and an additional $16 million deferred over the following 18 months.
Republic expands into U.S. asset tokenization market
For Republic, this acquisition marks a pivotal moment in its journey to provide tokenized assets including private equity shares, bonds, and real estate. A crucial aspect of the arrangement is that all of INX’s regulatory licenses will be transferred with the acquisition, encompassing U.S. broker-dealer, transfer agent, alternative trading system, and money transmitter licenses.
“Republic and INX are building the infrastructure that bridges traditional finance with blockchain, creating new opportunities for investors at every level.”
— Andrew Durgee, Co-CEO of Republic
The tokenization of real-world assets involves converting tangible assets into tradable tokens on the blockchain. According to research from InvestaX, the market for tokenized real-world assets has seen an impressive year-over-year growth of 85%, reaching $15.2 billion by December 2024. Additionally, the total value locked in RWAs on-chain surged to a record $10.68 billion in March.
Real-world assets (RWAs) are increasingly popular due to their potential to democratize access to investment opportunities that have historically been limited. Fields like real estate and fine art often demand substantial capital, while private equity investments are generally available only to accredited investors.
By facilitating fractional ownership, RWA tokens are poised to transform these markets, making them accessible to retail investors and potentially reshaping the investment landscape.