The United States has taken a groundbreaking step in the convergence of traditional finance and blockchain technology with the approval of the first regulated tokenized stock trading platform. While many expected industry giants like Coinbase or Kraken to lead this charge, it’s Dinari, a San Francisco-based fintech firm, that has secured the regulatory green light. This milestone marks a pivotal moment for digital securities and opens new doors for retail and institutional investors alike.
Dinari Leads the Charge in Regulated Tokenized Equities
Dinari has become the first platform authorized by U.S. regulators to offer blockchain-based shares of public companies to domestic investors. The company achieved this through its subsidiary, which obtained broker-dealer registration from the U.S. Securities and Exchange Commission (SEC). This status is crucial, as it allows Dinari to legally facilitate securities transactions under federal oversight.
With regulatory approval in hand, Dinari plans to launch its licensed tokenized stock trading platform in the next quarter, following final coordination with the SEC. Unlike previous models that operate in regulatory gray areas, Dinari’s framework is fully compliant, setting a new standard for legitimacy in the digital asset space.
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Previously, Dinari had already issued digital stock tokens—known as dShares—to international users on the Coinbase Base network. However, its new U.S. license enables a strategic pivot: instead of serving retail clients directly, Dinari will integrate with brokers and fintech applications via API. This business-to-business (B2B) approach allows wider market penetration while maintaining compliance at scale.
Gabriel Otte, CEO of Dinari, emphasized that the platform is more than just a broker-dealer—it’s a full-stack financial infrastructure built on-chain. “We’re routing trades to established market centers and settling them on public blockchains,” Otte stated. “This isn’t just digitization; it’s modernization of the entire equity trading lifecycle.”
Why Tokenized Stocks Are Gaining Momentum
Tokenized stocks represent real-world equities converted into blockchain-based digital tokens. Each token mirrors the value and rights of a traditional stock share but operates on a decentralized ledger, enabling faster settlement, 24/7 trading potential, and reduced counterparty risk.
The benefits are clear:
- Near-instant settlement: Reduces T+2 or longer clearing times to minutes.
- Increased accessibility: Opens U.S. equities to global investors across time zones.
- Lower transaction costs: Eliminates intermediaries through automated smart contracts.
- Programmable ownership: Enables fractional shares and automated dividend distribution.
These advantages have fueled growing interest from both retail traders and institutional players. As regulatory clarity improves, more investors see tokenized securities as a viable bridge between crypto markets and traditional finance.
Competitive Landscape: Coinbase, Kraken, and the Race for Approval
Despite Dinari’s early lead, major crypto exchanges are close behind. Coinbase has filed with the SEC to offer tokenized versions of U.S. stocks, aiming to compete directly with retail brokers like Robinhood and Charles Schwab. If approved, Coinbase users could trade tokenized Apple or Tesla shares without accessing traditional brokerage accounts.
Meanwhile, Kraken has launched its own solution—Backed xStocks—on the Solana blockchain, offering over 50 tokenized stocks and ETFs. However, due to current regulations, Kraken’s service is limited to non-U.S. residents.
Dinari’s success sets a precedent that could accelerate approval timelines for these larger platforms. As the first mover with full SEC compliance, Dinari demonstrates that regulated tokenization is not only possible but operational.
Beyond Public Stocks: Tokenization Expands into Private Markets
The momentum around asset tokenization isn’t limited to public equities. New models are emerging to bring liquidity and access to historically closed private markets.
Take Republic, a New York-based investment platform, which recently launched rSpaceX—a blockchain-secured promissory note tied to the valuation of SpaceX shares. These tokens will trade on the INX Exchange after a one-year lock-up period. While holders don’t own actual SpaceX stock, they can participate in price appreciation linked to IPO or acquisition events.
This model opens pre-IPO investing to retail investors—a privilege once reserved for venture capital firms and accredited investors.
Republic’s vision extends further, targeting high-growth private companies like OpenAI, Stripe, and Anthropic. By tokenizing economic exposure without transferring legal equity, Republic creates a compliant pathway for broader market participation.
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The Future of Tokenized Real-World Assets
The implications of this shift are massive. According to a joint report by Ripple and Boston Consulting Group (BCG), tokenized real-world assets (RWAs)—including stocks, bonds, real estate, and private equity—are projected to grow from $600 billion today to **$18.9 trillion by 2033**.
This growth is driven by:
- Institutional demand for efficiency
- Investor appetite for 24/7 markets
- Regulatory frameworks catching up with innovation
Yet challenges remain. The World Economic Forum has cautioned that fragmented regulations and limited liquidity could hinder widespread adoption. Cross-border compliance, custody standards, and investor protection mechanisms still need harmonization.
However, the entry of regulated players like Dinari signals growing confidence in the model’s sustainability. Each new approval strengthens the ecosystem and paves the way for broader financial transformation.
Frequently Asked Questions (FAQ)
Q: What is a tokenized stock?
A: A tokenized stock is a blockchain-based digital representation of a traditional stock share. It reflects the asset’s value and may include rights like dividends, but trades on decentralized networks.
Q: Are tokenized stocks legal in the U.S.?
A: Yes—but only when issued and traded through SEC-registered broker-dealers. Dinari is the first platform with full approval to offer them domestically.
Q: Can I trade tokenized stocks 24/7?
A: While blockchain enables round-the-clock settlement, current platforms often align with market hours due to regulatory and pricing mechanisms. Full 24/7 trading may come in later phases.
Q: Do I own real stock when I buy a tokenized share?
A: In compliant platforms like Dinari’s, yes—the tokens are backed by actual shares held in custody. Ownership rights are preserved through regulated intermediaries.
Q: How does this affect traditional brokers?
A: It introduces competition by offering faster settlement, lower fees, and global access. Traditional firms may adopt similar tech or partner with blockchain platforms.
Q: Is Dinari available to individual investors?
A: Not directly—at least not yet. Dinari focuses on B2B integration with brokers and fintech apps. End users will access its services through partner platforms.
Final Thoughts: A New Era of Financial Infrastructure
Dinari’s approval is more than a company milestone—it’s a signal that regulated blockchain finance is here. By combining SEC compliance with public blockchain settlement, the platform proves that innovation and oversight can coexist.
As more firms follow suit, we’re likely to see:
- Broader access to global markets
- Faster and cheaper cross-border transactions
- New investment products built on programmable ownership
The race is on—not just for market share, but for shaping the future of how value moves in the digital age.
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