Dinari Secures SEC Approval for Tokenized Stock Trading in US

Dinari, a San Francisco-based decentralized finance (DeFi) protocol, has achieved a significant milestone by securing approval from the Securities and Exchange Commission (SEC) to offer tokenized stock trading in the United States. This approval positions Dinari at the forefront of on-chain financial services, marking a notable development in the decentralized finance sector.

According to Gabriel Otte, CEO of Dinari, this approval is not merely about broker-dealer functionality but represents a full financial infrastructure built on-chain. Dinari has already issued dShares internationally prior to this approval, and with the SEC's green light, the firm plans to expand beyond broker-dealer services, providing a comprehensive financial infrastructure.

This regulatory approval is expected to enhance institutional and fintech partnerships, potentially leading to an increase in tokenized market volumes once Dinari's platform becomes operational. Industry analysts foresee competitive pressure on existing players, suggesting that Dinari's entry could transform the cryptocurrency equity space.

The approval also indicates a heightened regulatory focus on blockchain equities, with the SEC prioritizing compliance. Dinari's compliance-focused approach could serve as a model for other firms pursuing similar approvals. As trading activity grows, increased on-chain settlement volumes are anticipated. Dinari's use of the Ethereum Base L2 network further consolidates its role in decentralized finance infrastructure development.

Dinari's achievement sets a precedent for the industry, as no other firm has attained this level of regulatory approval for tokenized equities. This development comes as U.S. regulators show increasing support for crypto-based projects, creating a more favorable environment for startups like Dinari. The success of Dinari's initiative could pave the way for broader adoption of blockchain technology in the financial industry, transforming the way traditional assets are traded and managed.

Under the new framework, Dinari will hold the actual stocks and issue dShares, which represent these positions. Investors will be able to trade dShares similarly to ordinary shares, but with the added benefits of faster settlements and lower fees. The continuous operation of the networks ensures that trading will never pause, providing a more efficient and seamless trading experience. Dinari plans to integrate its platform into third-party trading apps and desks, acting as a technology provider rather than offering direct retail services. This approach establishes a legal foundation for on-chain equity trading and secures regulatory approval in U.S. markets.

Dinari plans to begin operations in the next quarter, with several market participants already on board, though their names remain confidential. Investors will closely monitor whether dShares gain traction among brokers and asset managers. If successful, Dinari could introduce a new model for trading real-world assets by integrating blockchain networks with standard broker rules. This approach has the potential to lower costs and expedite settlements, offering a more efficient and seamless trading experience.