Republic Crypto Launches R/Note on Avalanche: A New Era for Tokenized Securities and Venture Portfolio Dividends


In the realm of cryptocurrency, fintech startup Republic Crypto is set to introduce its revenue-sharing tokenized security, R/Note, on the Avalanche blockchain. This move aligns with the growing trend of tokenizing real-world assets (RWA) within the crypto space. R/Note is designed to distribute stablecoin dividends to investors who have a stake in Republic's venture portfolio. Whenever Republic exits a successful investment, investors will receive their proportional share, up to 25% of the dividend pool.

R/Note stands out as a security token, a deliberate departure from the common claim among crypto tokens that they are not securities. This distinction is intentional, as R/Note will be disbursing dividends from the proceeds of equity sales. Tokenization, the process of bringing traditional investments or RWAs onto blockchains in token form, has gained significant traction in the crypto space, with even global banks exploring this trillion-dollar opportunity.

The choice of the Avalanche blockchain for R/Note is strategic, given its features such as controllable subnets, making it well-suited for RWAs. Subnets, in this context, are customizable side chains that can optimize for regulatory rules associated with digital securities.

Avalanche has attracted attention from major players in the financial world, with J.P. Morgan recently testing a tokenized portfolio on a permissioned Avalanche subnet. R/Note's move to the Avalanche blockchain follows a broader trend in the industry.

Beyond the blockchain choice, digital securities like R/Note offer advantages over traditional securities. Notably, the swift distribution of dividends from equity exits is facilitated by the tokenized form, enabling immediate transfers compared to traditional securities.

Republic Crypto recently concluded a public sale, selling $30 million worth of R/Note. Once live on the Avalanche blockchain, the asset is set to establish a secondary market. While tokenized securities are not a new concept in the crypto space, Republic emphasizes the accessibility of its iteration, attributing it to an in-house approach for issuing and trading assets, positioning itself as a key player in the evolving landscape of tokenized assets.

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