Animoca Brands, a leading Web3 investment firm with a portfolio of over 600 projects, is set to have its equity tokenized on the Solana blockchain through a collaboration with Republic, a global investment platform. This initiative aims to broaden investor access to Animoca Brands' equity, which is currently not listed on any public exchange.
Democratizing Access to Private Markets
The tokenization of Animoca Brands' equity seeks to democratize investment opportunities, allowing a wider range of investors to participate in the company's growth. Currently, access to Animoca Brands' equity is primarily available through over-the-counter (OTC) secondary markets, which can be illiquid and opaque. By tokenizing its equity, Animoca Brands aims to create a more efficient and transparent method for investment, broadening accessibility while adhering to regulatory requirements.
Leveraging Solana's Blockchain
The tokenized equity will be minted on the Solana blockchain and distributed to participating investors' wallets. Trading of the tokens will be facilitated on Republic's global marketplace. Solana was chosen as the tokenization platform due to its speed, scalability, and growing institutional adoption. Solana's high-performance infrastructure ensures that tokenized shares can move with the same speed and efficiency as the internet itself.
Lily Liu, President of the Solana Foundation, stated that tokenizing Animoca Brands' equity on Solana showcases what Internet Capital Markets make possible, including instant, global access to private company ownership. She added that Solana's infrastructure allows tokenized shares to move with the speed and efficiency of the internet, opening up opportunities to retail investors worldwide.
Animoca Brands' Web3 Vision
Animoca Brands' leadership supports the initiative as a strategic step toward its Web3 vision. Yat Siu, Executive Chairman and Co-Founder of Animoca Brands, said that the tokenization aligns with the company's commitment to democratizing ownership and expanding investment accessibility. He added that it provides novel options for investors to tokenize and trade their holdings, broadening investment accessibility for a wider market.
Republic's Role in Tokenization
Republic is a leading investment ecosystem that expands global access to private markets and sets new standards for transparency through blockchain-powered infrastructure. With a portfolio comprising over 2,500 companies and a community of 3 million members from more than 150 countries, Republic has deployed over $3 billion through its investment platforms, funds, and advisory firms.
Andrew Durgee, Co-Chief Executive Officer of Republic, added that the initiative to tokenize Animoca Brands' equity represents a meaningful development in the convergence of traditional finance with blockchain-based solutions, setting a precedent for how companies can structure their equity for the future.
Solana as an RWA Hub
Animoca Brands' tokenization bolsters Solana's role as a hub for Real World Assets (RWAs). Solana now hosts over $700 million in RWAs, and more than $13.5 billion when including stablecoins. That RWA figure alone has grown over 500% year-over-year.
Challenges and Future Prospects
Analysts note that while tokenization addresses secondary market inefficiencies, risks such as regulatory scrutiny and market volatility remain. Despite these challenges, the tokenization of Animoca Brands' equity on Solana represents a significant step forward in the convergence of traditional finance and blockchain technology, potentially paving the way for broader adoption of tokenized securities.
