Nasdaq to provide price feeds for tokenized stock trades on DeFiChain. From a legal standpoint, tokenized equities have had a few unstable months. But that doesn’t appear to be deterring legacy financial titans and proponents of decentralized finance (DeFi) from striking new agreements.
Nasdaq, Finnhub, and Tiingo will all provide pricing feeds to DeFiChain, a DeFi platform based on the Bitcoin network, according to Bloomberg.
Buyers can purchase the tokenized stock in fractions
DeFiChain allows users to trade tokenized equities. That correlate to the underlying pricing of publicly traded companies like Tesla, Amazon, and Apple. The tokenized equities, like a now-retracted Binance offering earlier this year, maybe acquired in fractions. Without requiring investors to buy a complete, traditional share, which requires custody of a real share certificate.
The tokenized equities are secured by cryptocurrencies, eliminating the need for a middleman. And may also be acquired as decentralized loans. The purchase of a tokenized stock, which is available for trading 24/7, does not provide the bearer ownership of the underlying asset. But rather lets them benefit from the asset’s price changes.
The offering compensates the frustrated individuals
DeFiChain’s decentralized stock trading system uses its own DFI token. As well as Bitcoin (BTC) and USD Coin, a stablecoin tied to the US dollar (USDC). Julian Hosp, the platform’s co-founder, stated that the “offering will open the door to many disappointed individuals by traditional markets”. Proponents like Hosp, on the other hand, will increasingly have to deal with authorities’ growing alertness towards the DeFi area.
The US SEC disclosed last week that it is investigating Uniswap, the world’s largest decentralized crypto exchange. In late July, the platform decided to remove hundreds of tokens and tokenized equities, in light of the increasing regulatory constraints.
In similar news, Binance had to suspend its highly popular stock tokens earlier that same month after falling under pressure by Hong Kong’s securities regulator and reports that European and British regulation authorities had been reviewing the offering for possible non-compliance with securities codes.