Republic Crypto to Launch Revenue-Sharing Tokenized Security on Avalanche Blockchain

According to CoinDesk, startup fintech Republic Crypto plans to host its soon-to-launch revenue-sharing tokenized security, R/Note, on the Avalanche blockchain. The asset will be used to distribute stablecoin dividends to investors who bought a share of the company's venture portfolio. Whenever Republic exits a successful investment, it will send holders their pro rata share of up to 25% of the dividend pool. R/Note is part of the growing 'real world asset' (RWA) trend in crypto and is considered a security, which means it must follow stricter rules around ownership and trading than most other blockchain-based tokens. Andrew Durgee, head of Republic Crypto, stated that the Avalanche blockchain is best-suited for RWAs due to its innate features, such as the ability to set up controllable subnets. These customizable side chains can optimize for regulatory rules associated with being a digital security. J.P. Morgan recently tested a tokenized portfolio on a permissioned Avalanche subnet, and the Avalanche (AVAX) token has risen by about 40% over the past week. Durgee also highlighted the advantages of digital securities like R/Note over traditional off-chain counterparts, such as the ability to quickly distribute dividends from equity exits. Republic sold $30 million worth of R/Note in a recently closed public sale and plans to have a secondary market once the asset is live on the Avalanche blockchain.