Bloomberg reported on Friday that Nasdaq, Finnhub and Tiingo will provide their prices to DeFiChain, a decentralized finance (DeFi) platform that operates on the Bitcoin network.
Tokenized stocks have had a few months of instability due to regulatory pressures in the market. But that hasn’t stopped financial giants and DeFi advocates from signing new trade deals.
DeFiChain offers the opportunity to trade tokenized shares at an underlying price of major publicly traded companies such as Amazon, Tesla and Apple.
Shares of the most successful companies on the market typically cost hundreds of dollars, which is too much for the retail investor. Therefore, tokenized shares can be purchased in fractions without requiring the total purchase of a traditional share.
Notably, tokenized stocks are backed by cryptocurrencies. Which eliminates the need for an intermediary. These stocks are available for trading 24 hours a day, 7 days a week.
It is also important to know that the purchase of a tokenized share does not confer ownership of the underlying asset on its buyer, but rather allows them to potentially benefit from the price movements of the acquired asset.
With platforms like DeFiChain that open their doors to the minority market. More money is expected to flow into the stocks of these large companies than ever before.
DeFiChain and the DeFi ecosystem regulations
The trading structure of the tokenized shares offered by the DeFiChain platform uses its native token, the DFI, as well as Bitcoin and the Stablecoin USD Coin (USDC) pegged to the United States dollar. The co-founder of the platform, Julian Hosp, has said that “the offering will open the door to many people who feel let down by traditional markets.” However, advocates like Hosp will increasingly have to deal with the regulatory situation in the market. This is because market regulatory institutions are paying more and more attention to the DeFi space.
Last week, it was revealed that the United States Securities and Exchange Commission. He was launching an investigation into the world’s largest cryptocurrency exchange, Uniswap. Consequently, increasing regulatory pressure has led to the elimination of dozens of tokens and tokenized shares on the platform.
In early July, sales of Binance’s highly popular tokenized shares, which represented fractions of shares in companies like Tesla and Coinbase, were suddenly suspended due to pressure from the Hong Kong securities regulator and previous reports that European and British regulators had been scrutinizing the offer. For a possible breach of securities laws.