Dinari, a US -based public security provider, is set to launch its own blockchain, who joins the latest wave of companies to generate their own infrastructure.
The chain, called the Dinari Financial Network, aims to serve as a coordination and layer of regulating for security issued on other networks such as arbitrum
Base, plume (Plume) And, soon, Solana. The network is custom developed using Avalanche’s (AVAX) Tech stack.
“This will be the foundational infrastructure for our settlement and clearing system, which up to this point has occurred in the off-chain,” Gabe Otte, CEO and Dinari’s co-founder, said CoinDesk in an interview.
The test net currently lives with plans for a public launch over the next few weeks, Otte added.
Dinari is one of the companies leading to tokenization of equities, a red-hot trend to make trading with stocks available on blockchain metals. Advocates say tokenization can enable rotation of the circle, faster repair while reducing costs.
Recently, Robinhood’s digital trading platform introduced Stock token in etherum layer-2 ARB
For EU users with future plans to build their own chain, while crypto exchanges including Kraken, bybit also began offer US stocks and ETF tokens.
In June, Dinari obtained a broker-dealer registration by Finra with approval of the tokenize National Market System (Nms) The security, which offers a following solution to issue a token version of US public stocks. Gemini, the exchange established by Cameron and Tyler Winklevoss, launched stock tokens in the EU with Dinari providing the tokenization infrastructure in Backend.
Why another L1?
Dinari’s decision to build its own chain follows a recent pattern seen in fintech and crypto firms. USDC Stablecoin Issuer Circle and payment company Stripe disclosed this week to pursue the owner of the blockchains. Rival tokenization companies such as Finance at Ondo and Securitize (cooperating with Etherna) are also working on their own networks.
In this method, they aim to gain greater control over compliance with regulations, hours of time and integration with traditional financial systems compared to deploying existing public blockchains.
For Dinari, having their own chain is “out of demand,” Otte said.
“A lot of public chains are not allowed for the right level of compliance required for dealing with security,” he explained. Another main reason is to facilitate and coordinate the trading of tokens released by Dinari in many blockchains without the fall of liquidity.
“If part of (the stock tokens) lives in Solana, part of the arbitrum, part at the base, you take the $ 100 trillion market and separated it,” he said. “How can you avoid that? With a goal-developed chain that allows us to essentially pull liquidity in all these different chains.”
By unifying the organization and liquidity, the company aims to bring continuous, following trading of US equality -equivalent to a global market, which firing for a similar role in the Deposit of Trust and Corporate Cleaning (DTCC)) For the stock market. The DTCC is the largest system of covering and regulating worldwide.
For avalanche selection to form, Otte emphasized the need for flexibility and the ability to control transaction fees (Gas prices)that is difficult in rollup and layer-2 solutions. Avalanche’s blockchain service, Ava Cloud Lets go businesses to rotate and customize blockchains for their own needs, says Morgan Krapetsky, VP of growing the ecosystem in AVA Labs.
Neutral Clearinghouse
Dinari wants to position the Dinari Financial Network to be a “neutral clearinghouse” for the industry, Otte said.
Initially, the management would come from a consortium of institutions including Gemini, custodian bitgo and asset manager Vaneck, who would serve as validators and also offered care services.
The plan is to completely decentralize the future chain, Otte said. This includes the potential launch of its own chain management token, he added.
Read more: Tokenized equities require an ADR structure to protect investors
