New York-based INX (INXDF), a digital asset broker-deal has received a $5.25 million investment from investment firm Republic, with an option for a full buyout later this year.

Republic will acquire around a 9.5% stake in INX at an approximate $50 million pre-money valuation, with a "non-binding" commitment to acquire of 100% of equity at a valuation of $120 million as early as third quarter of this year. The closing of the initial deal is expected to be within 60 days, subject to regulatory approval.

The goal of the two firms is to "expand the breadth and depth of tokenization infrastructure and access to digital assets for investors worldwide," according to an emailed announcement on Monday.

Also headquartered in New York, Republic is a digital merchant bank operating retail-focused investment platforms, backed by Galaxy Interactive and Morgan Stanley among others. The integration of INX's digital asset coverage into Republic's platforms could therefore present a major expansion in crypto trading capabilities on offer to a large traditional finance client base.

"By integrating INX's digital trading infrastructure for financial markets with Republic's expertise in primary distribution, we are redefining the way capital is raised and empowering both institutional and retail investors globally," said Kendrick Nguyen, CEO of Republic in the statement.

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