Dinari Pioneers Tokenized U.S. Stocks with Broker-Dealer Approval
Dinari, a blockchain startup, has secured broker-dealer registration, becoming the first U.S.-approved tokenized equity platform. This move permits Dinari to offer blockchain-based stock trading to U.S. investors. Tokenized equities could revolutionize the financial system by lowering costs and enabling faster transactions. However, challenges like market liquidity remain.
Dinari has made history by securing broker-dealer registration, marking it as the first tokenized equity platform to gain approval in the United States. This milestone permits the San Francisco-based startup to offer blockchain-based U.S. stock trading to investors, a frontier also being explored by crypto giants Coinbase and Kraken.
By converting company shares into digital tokens, Dinari aims to transform traditional trading with reduced costs, speedy settlements, and 24/7 availability. "Our goal is to elevate the financial system with a legal tokenized stock standard in the U.S.," said Gabriel Otte, Dinari's CEO.
Despite the buzz, critics and the World Economic Forum highlight significant challenges, including market liquidity and a unified global standard, that need addressing for mass adoption of tokenized equities.
(With inputs from agencies.)
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