Tech firm Republic is set to introduce a blockchain-based security token called the Republic Note, which will distribute dividends to retail investors from profits earned across the company's investment holdings. The Republic Note will be launched on the Avalanche blockchain and has already attracted over $30 million in investments. Dividends will be paid out in USD Coin (USDC) once the dividend pool reaches $2 million. Republic has also developed a Web3 self-custodial, cross-chain wallet for distributing dividends. While the notes will not be tradeable digital assets, they will be listed on select securities exchanges.
Choosing Avalanche for a broad audience of Web3 native investors
Republic President Andrew Durgee stated that the decision to use the Avalanche blockchain platform was driven by the aim of reaching a wide range of Web3 native investors. The Republic Note has been in development since 2016 and has undergone an audit by Quantstamp. Each Republic Note is priced at $0.36, with a maximum supply of 800 million tokens.
Blockstream also launches tokenized securities offering
Other players in the cryptocurrency ecosystem, including Blockstream, have also introduced tokenized securities offerings. Blockstream recently revealed the Blockstream ASIC Note, which enables investors to gain exposure to digital securities by using Bitcoin (BTC) to purchase ASIC mining hardware at scale. Blockstream plans to store and sell the hardware back to the market as demand for ASIC miners increases in 2024.
