Quick take:
- The layer-1 blockchain will be built using Avalanche’s development tech stack.
- The move follows a growing trend of building specialised chains for unique products like stablecoins and now tokenised stocks.
- In June, Dinari became the first stock tokenisation platform to receive a broker-dealer registration from FINRA.
Real-world asset tokenisation company Dinari is building a new layer-1 blockchain focused on stock tokenisation. The company plans to build ‘the DTCC of on-chain stocks’, CoinDesk reported on Thursday.
Dinari Financial Network will serve as a coordination layer for tokenised equities with VanEck, BitGo, and Gemini as validators. The platform is being built using Avaanche’s Web3 development tech stack.
The move comes at a time when several Web3 companies are beginning to shift toward specialized blockchains in a bid to increase performance and operational efficiencies. It also comes on the heels of Dinari becoming the first stock tokenisation platform to receive a broker-dealer registration from FINRA in June.
The company has been approved to tokenise National Market System (NMS) securities, offering a compliant solution to issue token versions of U.S. public stocks.
One of its first partners, Gemini, the crypto exchange company by the Winklevoss brothers, has already signed up to offer tokenised stocks in the EU.
Commenting on why his company decided to build its own blockchain, Dinari co-founder and CEO Gabe Otte, said: “A lot of the public chains [don’t] really allow for the proper level of compliance needed for dealing with securities. Another key reason was to facilitate and coordinate trades of Dinari-issued tokens across multiple blockchains without fragmenting liquidity.”
“If part of [the stock tokens] lives on Solana, part on Arbitrum, part on Base, you’re taking this $100 trillion market and fragmenting it. How do you prevent that? With a purpose-built chain that allows us to essentially pull liquidity across all these different chains,” he said.
In May, Dinari completed a $12.7M Series A round co-led by Hack VC and Blockchange Ventures. The fundraising brought the total raised as of May to $22.65 million.
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