The Event in Detail
Republic, a global investment platform, has announced its plan to tokenize the private equity of Animoca Brands, a prominent Hong Kong-based Web3 investment firm, on the Solana blockchain. This strategic move aims to expand worldwide investor access to Animoca Brands' shares, which are currently not listed on any public exchange. Animoca Brands maintains a portfolio of over 600 Web3 projects.
The tokenization process will involve minting the equity on the Solana blockchain and distributing these digital assets to participating investors' wallets. Subsequent trading of these tokenized shares will be facilitated on Republic's proprietary infrastructure. Andrew Durgee, Co-CEO of Republic, stated that this initiative establishes "a precedent for how companies can structure their equity for the future." Similarly, Lily Liu, President of the Solana Foundation, highlighted that the endeavor "showcases what internet capital markets make possible," providing retail investors access to opportunities previously exclusive to private markets.
Financial Mechanics of Tokenization
Traditionally, access to Animoca Brands' equity has been primarily through over-the-counter secondary markets. Republic's tokenization solution aims to introduce a more efficient and transparent investment method. By leveraging blockchain technology, the tokenized equity will enable fractional ownership and facilitate 24/7 trading, addressing longstanding inefficiencies such as high costs, limited liquidity, and fragmented access inherent in private secondary markets.
Republic operates as an investment ecosystem that broadens access to private markets, having deployed over US$3 billion across a portfolio of more than 2,500 companies. Its core mission is to utilize blockchain technology to foster a more inclusive and efficient global financial system, with this tokenization serving as a practical application of this strategy.
Business Strategy and Market Positioning
Animoca Brands' decision to tokenize its equity aligns with its core belief in democratizing ownership and access within the Web3 space. Executive Chairman Yat Siu affirmed that the tokenization "resonates with our core belief in democratizing ownership and access," providing novel options for investors to manage and trade their holdings while broadening investment accessibility for a wider market.
This initiative positions Animoca Brands at the forefront of real-world asset (RWA) tokenization within the Web3 sector, mirroring broader institutional trends. Similar moves include BlackRock and VanEck's integration of the Ripple USD stablecoin for tokenized funds, and a Nasdaq-listed company's announced intention to bring its equity to the blockchain. The move is expected to accelerate Animoca Brands' growth and foster broader adoption of blockchain-based equity structures by allowing existing shareholders to tokenize their holdings and enabling new investors to participate.
Broader Market Implications
The tokenization of Animoca Brands' equity underscores the accelerating interest and adoption of RWA tokenization across the financial industry. Research indicates a significant market potential for tokenized real-world assets, with projections suggesting a valuation between $30 trillion and $50 trillion by 2030, and an estimated addressable market of $400 trillion. Institutional-grade tokenization is gaining substantial momentum, with major financial institutions such as BlackRock, JPMorgan, and Franklin Templeton actively engaging in this space. For example, BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) accumulated $648.5 million in assets under management within its first six months of operation.
Solana is playing a pivotal role in this evolution, emerging as a preferred blockchain for tokenized assets due to its high throughput and low transaction costs. This enables fast settlement and integration with decentralized finance (DeFi) protocols. While challenges such as network stability have been noted in the past, the upcoming Firedancer upgrade is anticipated to enhance Solana's capacity and reliability, addressing institutional expectations.
Regulatory frameworks are also evolving to accommodate digital assets. The EU's Markets in Crypto-Assets Regulation (MiCAR) is expected to be fully operational by December 2024, and the UK is advancing its own extensive regulatory framework for crypto assets, with full implementation anticipated during 2026. This emerging regulatory clarity, particularly in Europe, is facilitating greater adoption and integration of tokenized assets into mainstream finance.
Andrew Durgee of Republic commented on the broader significance, stating, "Our 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." Lily Liu from the Solana Foundation emphasized the revolutionary aspect, noting that tokenizing Animoca Brands' equity on Solana "showcases what Internet Capital Markets make possible — instant, global access to private company ownership." These statements collectively highlight the transformative potential of RWA tokenization in reshaping global capital markets and democratizing investment access.
Edgen Crypto·Sep 30 2025, 14:15