Fintech startup Republic Crypto has announced its plans to launch a new tokenized security called R/Note on the Avalanche (AVAX) blockchain.
Fintech startup Republic Crypto has announced its plans to launch a new tokenized security called R/Note on the Avalanche (AVAX) blockchain. This move aims to enable Republic to distribute stablecoin dividends to investors who have invested in the company's venture portfolio. When Republic exits a successful investment, it will allocate a proportionate share of up to 25% of the dividend pool to R/Note holders.
R/Note is part of the growing trend of real-world asset (RWA) investments in the cryptocurrency sector. In contrast to other crypto tokens that deny their security classification, R/Note is explicitly categorized as a security because it will distribute dividends generated from equity sales. The tokenization process, which involves converting traditional investments like bonds and private funds into blockchain-based tokens, has gained significant traction in the crypto industry, attracting interest from global banks looking to tap into this trillion-dollar opportunity.
R/Note is subject to stricter ownership and trading regulations compared to other blockchain-based tokens due to its unique characteristics. The Avalanche blockchain was chosen as the host for R/Note because it offers specific features, such as controllable subnets, that enhance compliance with regulatory rules for digital securities, according to Andrew Durgee, Head of Republic Crypto.
Avalanche has piqued the interest of prominent players in the investment industry, with J.P. Morgan recently testing a tokenized portfolio on a permissioned Avalanche subnet. The value of Avalanche's native token (AVAX) has experienced a substantial 40% surge over the past week.
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