Dinari Secures First Broker-Dealer License for Tokenized U.S. Stocks

Dinari, a pioneering platform in the realm of digital assets, has secured the first broker-dealer registration to offer tokenized U.S. stocks. This groundbreaking development marks a significant milestone in the evolution of blockchain-based equity trading. Dinari's tokenized equities, known as dShares, are already accessible through decentralized finance platforms such as Coinbase's Base blockchain network. However, this new license allows Dinari to legally offer these tokenized stocks to a broader audience, potentially revolutionizing the way traditional stocks are traded.

The approval granted to Dinari sets a precedent for other major players in the cryptocurrency space, notably Coinbase and Kraken, who are also actively pursuing similar licenses. This move by Dinari could accelerate the adoption of tokenized stocks, as it provides a legal framework for their trading. The ability to tokenize stocks and offer them to traders represents a significant step forward in the integration of blockchain technology with traditional financial markets. This development could lead to increased liquidity, transparency, and efficiency in stock trading, benefiting both investors and issuers.

The implications of Dinari's achievement are far-reaching. By tokenizing stocks, investors can gain fractional ownership of equities, making it easier for smaller investors to participate in the market. Additionally, the use of blockchain technology ensures that transactions are secure, transparent, and immutable, reducing the risk of fraud and errors. This could attract more institutional investors who are increasingly looking for secure and efficient ways to trade assets.

The regulatory approval for Dinari also highlights the growing acceptance of blockchain technology by regulatory bodies. This could pave the way for more innovative financial products and services, further integrating blockchain with traditional finance. As more platforms like Coinbase and Kraken seek similar approvals, the landscape of digital asset trading is poised for significant growth and transformation. The success of Dinari's tokenized stocks could serve as a blueprint for other companies looking to enter this burgeoning market, fostering a more inclusive and efficient financial ecosystem.

San Francisco, California-based firm stated that it will activate the licensed entity during the next quarter, following completion of onboarding with the Securities and Exchange Commission (SEC).

“For me, the end game is how can we elevate the entire financial system, which means not just a broker-dealer that’s on chain, but an exchange that’s on chain,” said Gabriel Otte, the co-founder and CEO of Dinari.

In May, Kraken announced plans to offer tokenized versions of more than 50 stocks and ETFs — including Apple, Tesla, Nvidia and SPDR S&P 500 ETF. Kraken will use Backed’s new xStocks to offer tokenized stocks on the Solana blockchain in jurisdictions outside the United States.

On June 17, Coinbase announced seeking approval from the U.S. SEC to offer tokenized equities to users. Tokenized stocks are digital versions of regular company shares. Rather than holding ordinary stock, investors would hold virtual tokens representing company shares.

This makes Coinbase and Kraken the next in line to receive approval to offer tokenized stocks in the United States.