Nasdaq will provide pricing feeds to DeFiChain, a DeFi platform based on the Bitcoin network, with Finnhub and Tiingo.
From a regulatory standpoint, tokenized equities have had challenges over the few months, but that doesn’t appear to be deterring legacy financial institutions and proponents of decentralized finance (DeFi) from striking new collaborations.
Nasdaq, Finnhub, and Tiingo will provide pricing feeds to DeFiChain, a DeFi platform based on the Bitcoin (BTC) network, according to Bloomberg.
Trading in tokenized equities that correspond to the underlying pricing of major publicly traded companies such as Tesla, Amazon, and Apple is available on DeFiChain. The tokenized equities, which are similar to a former offering by Binance a few months ago, can be purchased in fractions rather than complete shares, which need custody of a real share certificate.
Cryptocurrencies secure the tokenized equities, thus eliminating the need for a middleman, and may also be purchased as decentralized loans. The purchase of a tokenized stock, which is available for trading 24 hours a day, does not grant the bearer ownership of the underlying asset, but rather allows them to profit from the asset’s price changes.
DeFiChain’s decentralized stock trading system uses DFI, a native token, as well as Bitcoin (BTC) and USD Coin, a stablecoin tethered to the US dollar (USDC).
Julian Hosp, one of the platform’s co-founders, believes the service will help many consumers who have been dissatisfied by traditional marketplaces. Enthusiasts of the likes of Hosp, on the other hand, will increasingly have to deal with regulators’ increased focus on the DeFi realm.
Also read: European Finance Regulator Refers to Cryptocurrencies as “Trending Financial Innovation”