The investment platform Republic is planning to issue tokens that simulate the value of shares in prominent private companies like SpaceX, OpenAI, and Anthropic. This move aims to expand investment opportunities in leading technology companies for individual investors.

How it works and benefits for retail investors

According to The Wall Street Journal, #Republic will buy back shares from the secondary market, then issue tokens representing 'price-linked notes'. As a result, individual investors can participate with a small amount ranging from 50 to 5,000 USD, much lower than the direct investment threshold in private equity (usually 10,000–100,000 USD). After holding for at least 12 months, these tokens will be allowed to trade on the INX exchange, which Republic acquired in April 2025.

Although these tokens do not represent legal ownership rights to shares or access to financial reports, this is still a significant step, helping retail investors indirectly access profits from leading technology companies that have previously only been available to institutional investors.

Legal basis and potential concerns

Republic states that it relies on provisions in the JOBS Act of 2012, allowing companies in the U.S. to raise up to 5 million USD per year from ordinary investors. These tokens will be issued by Republic itself without the consent of companies like SpaceX or #OpenAI . Essentially, this is a form of 'debt instrument' promising rewards based on the appreciation of the underlying stock value. Republic asserts that the project has been licensed under the Regulation Crowdfunding model from the U.S. Securities and Exchange Commission (SEC).

However, professionals still have many doubts:

Lack of ownership: Tokens do not represent actual ownership rights, lack transparency and shareholder rights.

Public information disclosure requirements: If too many people own the tokens, the issuing company may be required to disclose information like a public company.

Concerns from the SEC: The SEC could very well view this as a form of unapproved derivative security, similar to how they handled Binance's 'stock token' in 2021.

Objections from parent companies: #SpaceX or OpenAI may oppose this plan due to concerns about the impact on shareholder structure or brand value.