Fintech company Republic has acquired a 9.5% stake in digital securities and cryptocurrency trading platform 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 will close within 60 days, subject to regulatory approval.
The agreement includes the possibility of repurchasing the remaining shares of INX at a valuation of $120 million no earlier than the third quarter of 2023.
“By combining experience and resources in Tradfi and DeFi, companies are ready to implement a wide range of interoperable solutions for the primary and secondary markets, as well as create a basic infrastructure focused on retail.”the press release says.
The integration of solutions from INX will allow expanding the Republic product line to trade digital assets.
The deal also includes asset tokenization services for the portfolio companies of the fintech firm and the placement of security tokens on INX ATS for 24/7/365 trading.
Republic includes a digital commercial bank with a focus on corporations, as well as a network of platforms focused on retail investors in the US, UK, UAE, South Korea, Singapore and other countries. The company was backed by Galaxy Interactive and Morgan Stanley.
Thanks to Republic, at least 1,500 startups have been able to raise over $2 billion. The ecosystem includes almost 3 million participants from more than 100 countries.
INX holding includes regulated platforms for trading digital securities and cryptocurrencies, as well as an inter-dealer broker. The company holds US-based broker-dealer licenses, ATS and a transfer agent.
Recall that in May 2021, INX raised $85 million following the results of a registered by the US Securities and Exchange Commission IPO their Ethereum tokens.
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