Startup fintech company Republic Crypto has announced plans to launch its revenue-sharing tokenized security, R/Note, on the Avalanche blockchain. R/Note will be used by Republic to distribute stablecoin dividends to investors who have invested in the company’s venture portfolio. When Republic makes a successful investment exit, it will distribute up to 25% of the dividend pool to R/Note holders. R/Note is part of the growing trend of “real world asset” (RWA) tokenization, which involves bringing traditional investments, such as bonds and private funds, onto the blockchain. Unlike many other crypto tokens, R/Note is classified as a security due to its payment of dividends from equity sales. The Avalanche blockchain is well-suited for RWAs due to its unique features, such as the ability to set up controllable subnets. These subnets can be customized to optimize compliance with regulatory rules for digital securities. J.P. Morgan recently tested a tokenized portfolio on a permissioned Avalanche subnet, highlighting the interest in the platform from major players in the investment world. The price of Avalanche’s (AVAX) token has increased by approximately 40% in the past week. R/Note and other digital securities offer advantages over traditional securities, such as the ability to quickly distribute dividends from equity exits. Republic sold $30 million worth of R/Note in a recent public sale and plans to establish a secondary market once the asset is live on the Avalanche blockchain. Republic believes that its approach to issuing and trading tokenized securities in-house sets it apart from other contenders in the market, making it more accessible and viable. The company aims to be at the forefront of the tokenized future.
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Republic Crypto Chooses Avalanche Blockchain for Launch of Revenue-Sharing Tokenized Security, R/Note