The inaugural year of on-chain US stock trading has begun! Dinari has been approved by the SEC, igniting a wave of tokenization.

Tokenization of stocks has become a battleground, and Dinari, a fintech startup headquartered in San Francisco, has become the first tokenized equity platform in the United States to obtain a broker-dealer registration, planning to officially launch in the U.S. market in the coming months.

SEC approves the first tokenization stock platform

Dinari is a fintech startup based in San Francisco that focuses on the tokenization of U.S. stocks and bringing them into blockchain trading. According to Reuters, Dinari has become the first tokenized equity platform in the U.S. to obtain broker-dealer registration, which means it can legally offer blockchain-based stock trading services within the United States.

Its core product is a tokenized stock called dShares, which represents ownership of physical stocks and is backed by actual assets at a 1:1 ratio. Dinari is currently licensed by the U.S. Securities and Exchange Commission (SEC) and plans to officially launch in the U.S. market in the coming months.

Dinari adopts a B2B model

Unlike traditional brokers such as Charles Schwab or Robinhood, Dinari adopts a B2B model by integrating its trading interface into other platforms rather than targeting end users directly. Its tokenized stocks are currently offered in regions outside the United States through platforms like Coinbase's Base blockchain, with plans to expand to the U.S. in the future.

Dinari announced that its brokerage trading entity will start operations in the next quarter. CEO Gabriel Otte stated that Dinari has reached collaborations with several companies, but he refused to disclose specific names.

Tokenization of stocks has become a battleground, and Coinbase is also actively competing.

Currently, tokenized stocks have not yet been traded in the United States, but several companies are trying out this concept. Kraken announced last month that it will launch a U.S. stock token called xStocks, which will be issued in specific markets outside of the United States.

The cryptocurrency exchange Coinbase is also seeking approval from the U.S. Securities and Exchange Commission to offer "tokenized stocks" to its customers.

Motley Fool analyst Travis Hoium stated that tokenization of stocks could change the investment model for public and private companies, enabling 24/7 trading, improving trading efficiency, and lowering participation thresholds.

Bitwise CEO Hunter Horsley believes that tokenization can create a more inclusive capital market, expanding participation in the U.S. public markets to more small and medium-sized enterprises, and promoting financial democratization.

However, some critics have pointed out that there are still many issues that need to be resolved before tokenized stocks can be widely traded. A report released by the World Economic Forum last month identified insufficient liquidity in the secondary market and the lack of clear global standards as the two major challenges facing the application of tokenized stocks.

This article marks the beginning of on-chain US stock trading! Dinari has been approved by the SEC, sparking a wave of tokenization, first reported by Chain News ABMedia.