Startup Dinari, specializing in blockchain-based access to US stocks, has secured broker-dealer registration for its subsidiary, clearing a significant regulatory hurdle.
Dinari's Broker-Dealer Registration
Dinari announced it has received the first broker-dealer registration in the US for its subsidiary, placing the company ahead of other crypto firms like Coinbase and Kraken, which are also exploring tokenized stock offerings.
Plans and Future of Tokenized Stocks
Dinari is continuing to work with the Securities and Exchange Commission (SEC) before launching its service in the US, expected in the coming months. Tokenized equities turn traditional shares into blockchain-based tokens, allowing investors to hold digital representations of stocks rather than the shares themselves. Supporters of this model argue it can reduce trading costs, shorten settlement times, and eventually allow for round-the-clock trading. "For me, the real goal is to upgrade the entire financial system," said Gabriel Otte, Dinari's co-founder and CEO.
Comparison with Competitors
Unlike retail brokers like Robinhood or Schwab, Dinari's platform is designed to be integrated into other firms' apps rather than offering a consumer-facing product. The company claims it will have its broker-dealer operational in the next quarter and has several partnerships lined up, though it has not publicly named them. Dinari's tokenized equities are currently available to users outside the US through platforms such as Coinbase's Base blockchain.
Despite the interest in tokenized stocks within the crypto world, significant challenges such as low liquidity and the lack of clear global standards still hinder broader adoption.
