Republic to Tokenize SpaceX Shares, Opening Access to Retail Investors

Investment platform Republic will begin selling digital tokens that mirror the performance of SpaceX’s private shares, according to a report published on June 25.

The tokens will not confer ownership or shareholder rights but are structured to track the value of the underlying stock. Republic said the offering will not require permission from the companies whose shares are being mirrored, as the tokens will represent securities issued by Republic itself.

Republic is introducing Mirror Tokens, a new type of tokens tied to the performance of the world’s most valuable private companies.

🔓Unlock access: https://t.co/FYnIJAXEHG pic.twitter.com/9fCItOqs9g

— Republic (@joinrepublic) June 25, 2025

Track SpaceX Stock from $50

According to Republic CEO Kendrick Nguyen, this structure would comply with current securities rules, but regulators could still take a different view.

The company is relying on a provision in the 2012 JOBS Act that allows private issuers to raise up to $5 million annually from retail investors.

Republic holds the necessary license under Regulation Crowdfunding and says the tokens will be priced according to secondary market valuations of SpaceX shares.

Each token represents a contractual right to the value difference between Republic’s purchase price and the eventual sale or IPO price of the private company shares. Republic stated that it will hold or otherwise maintain exposure to the underlying equity.

Investors can buy as little as $50 worth of tokens, with a cap of $5,000 per person. Republic says tokens can be traded on INX, an alternative trading system it is in the process of acquiring, after a one-year lockup period.

Legal questions remain around the lack of access to financial disclosures and the absence of shareholder recognition. Republic contends that the tokens are structured as investment contracts and do not require corporate cooperation.

Tokenization Raises Questions Over Investor Rights and Oversight

Tokenization of private equity has drawn past scrutiny. Binance suspended similar offerings in 2021 following regulatory pressure over tokenized Tesla shares. Republic said its current model differs due to compliance with U.S. crowdfunding exemptions.

Unlike traditional equity, these tokens create financial claims without formal shareholder status or access to company records. This distinction may challenge existing frameworks for investor protections.

Regulators will need to address how these offerings interact with disclosure rules, secondary trading restrictions, and corporate governance standards. The outcome could shape how private market access is structured across retail-facing digital finance.

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