Republic launches the Mirror Tokens program, the first token rSpaceX simulates the performance of SpaceX stock.

The global private securities trading platform Republic, based in New York, announced the launch of the Mirror Tokens program on June 25. This is an innovative type of Token linked to the performance of the most valuable private companies globally. Through blockchain technology, Republic will issue Tokens tied to private company stocks, providing retail investors with the opportunity to invest in unlisted private companies.

The first tokenized asset launched, rSpaceX, is linked to the performance of SpaceX. In the future, Republic also plans to launch digital tokens that track the performance of private AI companies OpenAI and Anthropic.

rSpaceX Token Details

rSpaceX Token will be minted on the Solana blockchain, with a price of 1 dollar per Token and a minimum investment of 50 dollars, and a maximum of 5000 dollars. This significantly lowers the threshold for traditional private equity investments, which typically require a minimum investment of nearly 10,000 dollars and must meet specific income or net worth requirements. Republic's target price range is 225 to 275 dollars per share.

Investors can participate in this rSpaceX Token issuance through Apple Pay or USDC. Although token holders will not become shareholders of SpaceX, they can engage in stock price fluctuations, reflecting the economic performance of direct ownership. The investment will be held in the user's own wallet and can be tracked on the blockchain.

Kendrick Nguyen, the CEO of Republic, stated that the rSpaceX Token represents securities sold by Republic itself, without the need for permission from SpaceX or any other company.

Regulatory Compliance

The Republic plans to use the Reg CF (Regulation Crowdfunding) exemption to issue these tokens. The Reg CF exemption allows both accredited and non-accredited investors to participate in securities offerings and is a form of notice filing, meaning that the offering documents submitted to the U.S. SEC do not require review.

According to sources, Republic can issue these Tokens under the 2012 Jumpstart Our Business Startups (JOBS) Act. The act allows U.S. companies to raise up to $5 million annually from retail investors.

Exit Mechanism

rSpaceX Token will have a one-year lock-up period, after which it can be traded on secondary market exchanges. In April of this year, Republic agreed to acquire the parent company of an exchange for $60 million to enhance its real-world assets, security tokens, and other cryptocurrency investment services.

If a qualifying liquidity event occurs, such as an IPO, direct listing, or acquisition, investors will receive Token returns that match the SpaceX stock price.

Industry Trends

The tokenized stock sector is attracting more and more participants. A project based on the BNB Chain launched this week that claims to allow investment in SpaceX stocks through the SPCX token. Another cryptocurrency trading platform announced last month plans to launch tokenized versions of over 50 U.S. stocks and ETFs, including Tesla, but this service is only available to non-U.S. investors.

In addition, a well-known cryptocurrency exchange is attempting to launch tokenized stock trading and is currently seeking a "no-action letter" or exemption from the US SEC, aiming to compete directly with traditional brokers.

The development of tokenized stocks demonstrates the trend of integration between traditional finance and blockchain technology, providing investors with more diverse investment options. However, the regulatory environment in this field is still evolving, and market participants need to pay close attention to relevant policy changes.