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INX and Republic will integrate TradeFi and DeFi into both of their ecosystems to enhance tokenization access and global market trading.
Financial services firm Republic has partnered with broker-dealer INX to develop a blockchain service for primary and secondary markets. The collaboration between the two companies is part of an investment deal, under which Republic invests $5.25 million in INX. The transaction gives Republic 9.5% of the outstanding shares of INX.
The investment was calculated at a $50 million pre-money valuation. The two companies have also agreed to a non-binding term sheet that would see INX sell all of its common equity at a potential valuation of $120 million.
according to an official statementBoth companies hope to improve global investor access to cryptocurrencies and increase tokenization. The statement also highlighted specific points to expect from the collaboration between Republic and INX. The companies are planning to democratize finance and create more investment opportunities through multiple channels.
The Republic and INX partnership will see INX offer differentiated tokenized asset services to companies under the management of Republic. INX will list these companies for secondary market trading on its 24-hour ATS (Alternative Trading System). In addition, INX will integrate its conversion and trading solutions for cryptocurrencies into Republic’s platform. In return, Republic will integrate its FX broker-dealer services with INX.
The announcement states that INX and Republic will merge their traditional finance (TradFi) and decentralized finance (DIF) offerings.DeFi) Ability to create multiple tailored solutions for primary and secondary markets. In addition, the partners will build infrastructure that caters to the digital and retail economy.
INX and Republic officials comment on the partnership
Republic CEO Kendrick Nguyen said that combining the products and expertise of the two companies will change the funding landscape for all retail and institutional investors. For Shai Datika, CEO of INX, the plan is to build the infrastructure for the token. Datika said:
“We aim to nurture and grow the global token economy by not only establishing the necessary infrastructure to support its operations, but also an investment experience that excites investors around the world. As a strategic investor Through our collaboration with Republic, we are creating a fertile environment for both traditional and digital assets to flourish.
INX in May informed of Q1 2023 financial results, which included a net loss of $675,000. The report also shows unrealized gains on INX tokens worth $3.8 million, and INX token warrants worth $0.2 million. Excluding tokens and token warrants, the company’s adjusted net loss was $4.7 million.
Other highlights on the company’s books for the first quarter included $18 million in cash and equivalents and $8.2 million worth of corporate bond and treasury securities investments. INX reported $24 million in working capital and $36 million in reserve funds.
In addition, the company incurred a net loss of $4.5 million from operations in Q1 2023. However, total revenue of $1.6 million for Q1 2023 is 119% higher than that recorded in Q4 2022, although only 1% higher than Q1 2022.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.