Nasdaq, a leading U.S. exchange, has joined Finnhub, an API provider for stock, forex, and crypto markets, and Tiingo, a financial data platform in providing their respective price feeds and APIs to DeFiChain, a decentralized finance platform built on the Bitcoin network.
The rise of tokenization in the sphere of traditional finance has led to the debut of tokenized stocks, which are units of collateralized cryptocurrencies pegged on the underlying price of exchange listed firms such as Tesla, Apple, and Google, among others.
Tokenized stocks have been in the crypto space for some time now, despite regulatory backlash. Recently, the U.S. Securities and Exchange Commission (SEC) has disclosed that it is pursuing an investigation on Uniswap, a decentralized cryptocurrency exchange. The platform then promptly moved to delist several tokens, including tokenized stocks after being issued a prior warning by the regulatory agency in late July.
Earlier in April, Binance launched its own tokenized stocks offering, providing crypto investors with access to traditional stocks. However, this offering was recently rolled back as Binance faced multiple regulatory restrictions in various countries.
With a well-established name in the financial industry like Nasdaq venturing in a collaboration with DeFiChain, tokenized stocks will likely get a boost in adoption.
DeFiChain’s tokenized stocks offering provides users with the option to purchase fractionalized stocks, bypassing the requirement of purchasing whole shares. In traditional stocks, stockholder shares are represented by a physical certificate. With the advent of blockchain technology, these shares can now be represented over a smart contract recorded and executed via blockchain, in this instance, it’s the Bitcoin network itself.
“This will open the door to many people who are frustrated by traditional markets. As a community, we’re excited about that.” shared DeFiChain co-founder Julian Hosp.
DeFiChain operates as the native decentralized finance layer for Bitcoin, providing decentralized stock trading and other decentralized finance services through the use of its native token, $DFI, USD Coin ($USDC), and Bitcoin ($BTC).
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.