Tokenized Stocks Pioneer Dinari Earns Regulatory Green Light
Blockchain-based stock trading platform Dinari has obtained regulatory approval to tokenize stocks.
The license, which is subject to final approval by the Financial Industry Regulatory Authority, would allow the company to replicate the US stock market on the blockchain within the bounds of securities laws, Bloomberg reported Monday.
The report said that Dinari has registered with the Securities and Exchange Commission as a transfer agent, allowing the company to perform essential tasks such as distributing dividends and maintaining records of securities ownership.
Founded in 2021, Dinari rolled out its flagship product, Dinari Securities Backed Tokens (dShares), last week.
These tokens enable investors outside of the US to use cryptocurrencies to purchase shares of major US companies and exchange-traded funds (ETFs), including Tesla, Walt Disney, and Nvidia.
The dShares platform operates under Regulation S, which allows for SEC-compliant sales of securities to overseas investors.
It is worth noting that Dinari's tokenized stocks are backed by real-world shares purchased by the company. Alpaca Securities and Interactive Brokers Group provide custody for the actual equities.
The company has also secured investments from prestigious firms, including Susquehanna International Group, with backing from famous personas within the industry like former Coinbase Global executive Balaji Srinivasan.
“Oftentimes people, especially in the crypto space, are just afraid of regulation. And the thing is, in a lot of ways, they shouldn’t be,” Gabriel Otte, co-founder and chief executive officer of Dinari, said in an interview.
He pointed out that the highly-regulated US stock exchanges have flourished since the 1920s, becoming the most
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