The fintech company Republic bought a 9.5% stake in the platform for trading digital securities and cryptocurrencies INX for $5.25 million at a $50 million valuation.
Very excited to embark on this next chapter with @joinrepublic Great news for @INX_Group and the whole digital security space!https://t.co/VnzybbeuMR
— Alan Silbert (@alansilbert) June 19, 2023
The deal is expected to close within 60 days, subject to regulatory approvals.
The agreement provides for the potential repurchase of the remaining INX shares at a $120 million valuation no earlier than Q3 2023.
“Combining experience and resources in TradFi and DeFi, the companies are ready to implement a broad range of interoperable solutions for primary and secondary markets, and to build a foundational infrastructure geared toward retail trading,”, the press release said.
Integrating INX’s solutions will broaden Republic’s product lineup to include digital asset trading.
The deal also includes asset tokenisation services for the fintech firm’s portfolio companies and the listing of security tokens on INX ATS for 24/7/365 trading.
Republic comprises a digital corporate bank focused on the needs of corporations, as well as a network of platforms targeting retail investors in the United States, the United Kingdom, the UAE, South Korea, Singapore and other countries. The company is backed by Galaxy Interactive and Morgan Stanley.
Through Republic, no fewer than 1,500 startups have raised more than $2 billion. The ecosystem includes nearly 3 million participants from more than 100 countries.
The INX group includes regulated platforms for trading digital securities and cryptocurrencies, as well as a broker-dealer. The company holds broker-dealer licenses in the United States, an ATS and a transfer agent.
In May 2021, INX raised $85 million in a SEC-registered IPO of its Ethereum tokens.