Dinari, an American-based provider of tokenized public securities, is ready to launch his own blockchain, which joins the latest wave of businesses to build their own infrastructure.
The chain, called Dinari Financial Network, aims to act as a coordination and settlement layer for the securities issued on other networks such as Arbitrum
Base, Plume (Plume) And soon Solana. The network is custom built using Avalanche’s (Avax) Tech Stack.
“This will be the basic infrastructure of our settlement and clearing system, which has predominantly happened off-chain,” Gabe Oott, CEO and co-founder of Dinari, told Coindesk in an interview.
Testnet is currently live with plans for a public launch for the next few weeks, Oott added.
Dinari is one of the companies leading the tip of tokenization of stocks, a red-hot tendency to make trading in stocks available on blockchain rails. Supporters say tokenization could enable trade around the clock, faster settlements while reducing costs.
Recently, the digital trading platform introduced Robinhood Stock-tokens at Ethereum Layer-2 arbitumum
For EU users with future plans to build their own chain, while crypto exchanges including Kraken, Bybit also began to offer tokens of US stocks and ETFs.
In June, Dinari achieved a broker-Dealer registration of Finra with an approval to tokenize the national market system (NMS) Securities that offer a compatible solution to issue token version of US public shares. Gemini, the exchange founded by Cameron and Tyler Winklevoss, launched warehouses in the EU with Dinari that provided the tokenization infrastructure in Backend.
Why another L1?
Dinari’s decision to build its own chain follows a recent pattern seen across fintech’s and crypto companies. USDC StableCOin Issuer Circle and Payments Company Stripe revealed this week to pursue proprietary blockchains. Rival tokenizing companies such as Ondo Finance and Securitize (merged with ethhena) Also work on their own networks.
With this approach, they aim to gain more control over compliance with rules, uptime and integration with traditional financial systems compared to implementation on existing public blockchains.
For Dinari, having their own chain was “out of necessity,” Oott said.
“Many of the public chains do not really allow the correct level of compliance needed to handle securities,” he explained. Another important reason was to ease and coordinate trades of dinari-issued tokens across several blockchains without fragmentation of liquidity.
“If a part of [the stock tokens] Lives on Solana, part of arbitration, part on the base, you take this $ 100 trillion market and fragment it, “he said.” How do you prevent it? With a custom -built chain that allows us to essentially draw liquidity over all these different chains. “
By reconciling settlement (DTCC) to the stock market. DTCC is the world’s largest securities riding and settlement system.
To choose Avalanche to build on, Oott emphasized the need for flexibility and the opportunity to control transaction fees (gas prices)Which is difficult with rollup and LAG-2 solutions. Avalanche’s Blockchain Service, Ava Cloud lets companies spin up and adapt blockchains to their own needs, said Morgan Kruppeky, VP for ecosystem growth at Ava Labs.
Neutral Clearinghouse
Dinari wants to place Dinari Financial Network to be a “neutral clearinghouse” for the industry, Oott said.
Initially, governance comes from a consortium of institutions, including Gemini, Custodian Bitgo and Asset Manager Vaneck, who will act as validators and also offer custody services.
The plan is to fully decentralize the chain in the future, Oott said. It potentially includes launch of the chain’s own government, he added.
Read more: Tokenized Shares need an ADR structure to protect investors
