Crazy Creations on SOLANA - soon possible to buy SpaceX? (Patreon)

Republic has announced it will begin selling digital “tokens” that track the value of private shares in Elon Musk’s rocket and satellite company this week. The investment platform, which aims to give retail investors access to opportunities typically reserved for the wealthy, also plans to eventually offer similar tokens tied to other major private firms, such as AI companies OpenAI and Anthropic.

Mert is excited

This initiative is part of a broader movement among crypto exchanges, brokerages, and other financial players to use blockchain technology—the same underlying system as bitcoin—to reimagine traditional securities. These tokens, which are not yet widely tested with regulators or the companies themselves, represent a new way to trade shares of private firms not listed on major stock exchanges like the NYSE or Nasdaq.

However, there are significant uncertainties. Buyers of these tokens will not have access to the companies’ financial information and will not own actual equity stakes. Legal experts question whether companies like SpaceX might oppose this model, and regulators could scrutinize the tokens closely.

Republic says it can offer these tokens thanks to a provision in the 2012 JOBS Act, which allows private U.S. companies to issue securities and raise up to $5 million annually from retail investors. In this arrangement, Republic acts as the issuing company, and the tokens function as notes promising holders any gains in the price of SpaceX’s common stock if the company goes public or is acquired.

Republic holds a Securities and Exchange Commission license that permits it to use the Regulation Crowdfunding exemption to sell these tokenized securities to retail investors. According to Republic, it does not need permission from the underlying companies because the tokens represent securities issued by Republic itself.

Initially, the tokens for SpaceX and other companies will be priced according to how those companies’ shares trade in secondary markets, where accredited investors can buy and sell private company shares. If the company is sold or goes public, Republic says it will pay token holders any increase in share price.