$50 to buy SpaceX stock? Republic launches tokenized investment in private companies, OpenAI may be the next target

Republic, a New York-based private securities trading platform, launched the Mirror Tokens program, offering tokenized assets linked to private companies like SpaceX, with plans to include OpenAI and Anthropic in the future.
The first token, rSpaceX, is priced at $1 each on Solana, with a minimum investment of $50 and a maximum of $5,000, allowing retail investors to participate without traditional high barriers.
rSpaceX tokens do not grant shareholder rights but track SpaceX's stock performance, held in users' wallets and managed by Republic without requiring SpaceX's approval.
Republic leverages Reg CF and the JOBS Act to avoid regulatory hurdles, enabling small investors to participate without SEC review, with secondary trading possible on INX exchange after a one-year lock-up.
Other platforms like Paimon Finance (SPCX token) and Kraken (50+ U.S. stocks/ETFs) are also exploring tokenized stocks, while Coinbase seeks SEC exemptions to compete with traditional brokers.
Investors may receive returns matching SpaceX's stock price in events like IPOs or acquisitions, with Republic's acquisition of INX Digital enhancing its crypto investment services.

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On June 25, Republic, a global private securities trading platform headquartered in New York, launched the Mirror Tokens program, a new type of token linked to the performance of the world's most valuable private companies. Tokens linked to private company stocks are issued through blockchain technology to provide retail investors with investment opportunities in unlisted private companies.

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

rSpaceX Minimum investment is $50, no SpaceX license required

Republic’s offering page shows that rSpaceX tokens will be minted on the Solana blockchain and will cost $1 each, with a minimum investment of $50 and a maximum of $5,000 (usually, investors interested in investing in private companies need to reach a minimum investment of nearly $10,000 and meet specific income or net worth requirements). Republic’s target price range is $225 to $275 per share.

Investors can participate in the rSpaceX token offering through Apple Pay or USDC. rSpaceX token holders will not become shareholders of the company, but will participate in stock price fluctuations, reflecting the economic performance of direct ownership. Investments are held in the user's own wallet, tracked on the blockchain, and powered by Republic.

Republic CEO Kendrick Nguyen said the rSpaceX tokens represent securities sold by Republic itself, without the need for permission from SpaceX or other companies.

Republic’s tokenized products may have avoided regulatory risks

Private equity tokenization has attracted attention in the past. Binance paused a similar offering in 2021 due to regulatory pressure on Tesla stock tokenization. Republic said its current model is different. Republic plans to use the Reg CF (Crowdfunding Regulation) exemption to provide a path for small investors to issue these tokens to investors. The Reg CF exemption allows qualified and non-qualified investors to participate in securities offerings. Because Reg CF is a form of notice filing, the offering documents filed with the U.S. SEC do not need to be reviewed.

In addition, the company can issue the tokens under the JOBS Act of 2012, which allows U.S.-based companies to raise up to $5 million a year from retail investors by issuing securities, the sources said.

As for the exit method, rSpaceX tokens will be allowed to be traded on the secondary market INX exchange after a one-year lock-up period. In April this year, Republic agreed to acquire its parent company INX Digital for $60 million to enhance its real-world assets, security tokens and other cryptocurrency investment services.

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

Many institutions have entered the "tokenized stock" business

It is worth mentioning that Paimon Finance, based on BNB Chain, launched the SPCX token this week, which is said to also be able to invest in SpaceX shares.

Additionally, Kraken announced last month plans to launch tokenized versions of more than 50 U.S. stocks and ETFs, including Tesla, though the service will only be available to non-U.S. investors.

Coinbase is also currently trying to launch tokenized stock trading, and it is seeking a "no action letter" or exemption from the U.S. SEC to compete directly with brokers such as Robinhood and Charles Schwab.