Republic launches the Mirror Tokens program, debuting SpaceX related Tokens.

On June 25, Republic, a global private securities trading platform based in New York, announced the launch of the Mirror Tokens program. This is a new type of Token linked to the performance of the world's most valuable private companies. The program aims to provide ordinary investors with investment opportunities in unlisted private companies by issuing Tokens linked to private company stocks through blockchain technology.

The first issued tokenized asset is matched with SpaceX, named rSpaceX. In the future, Republic also plans to launch digital tokens that track the performance of private artificial intelligence companies OpenAI and Anthropic.

rSpaceX Token Details

According to the information on the issuance page, rSpaceX Token will be minted on the Solana blockchain, priced at $1 each. The minimum investment amount for investors is $50, and the maximum is $5000. This significantly lowers the threshold for traditional private equity investments, which typically require a minimum investment of nearly $10,000 and must meet specific income or net worth requirements. The target price range set by Republic is $225 to $275 per share.

Investors can participate in this rSpaceX Token issuance through Apple Pay or USDC. It is important to note that rSpaceX Token holders will not become shareholders of SpaceX, but can participate in stock price fluctuations, reflecting the economic performance of direct ownership. Investments will be held in the user's own wallet, can be tracked on the blockchain, and are supported by Republic.

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

Attempts to Avoid Regulatory Risks

The tokenization of private equity has attracted significant attention due to regulatory issues. Republic states that its current model is different. The company plans to utilize the Reg CF (Crowdfunding Regulatory Exemption) to provide a pathway for small investors to participate. The Reg CF exemption allows both accredited and non-accredited investors to participate in securities offerings, and 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 a year from retail investors by issuing securities.

Exit Mechanism

rSpaceX Token will be allowed to trade on the secondary market after a one-year lock-up period. In April of this year, Republic agreed to acquire the parent company of a trading platform for $60 million to enhance its real-world assets, security tokens, and other cryptocurrency investment services.

In addition to secondary market trading, if qualifying liquidity events occur, such as an IPO, direct listing, or acquisition, investors will receive Token returns that match the SpaceX stock price.

Industry Trends

It is worth noting that Paimon Finance, based on a certain blockchain, launched the SPCX Token this week, which is claimed to also allow investment in SpaceX stocks.

In addition, a trading platform announced last month plans to launch tokenized versions of over 50 US stocks and ETFs, including Tesla. However, this service is only available to non-US investors.

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