DeFiChain has announced a partnership with Nasdaq to provide price feeds.
Nasdaq tokenized shares on DeFiChain
DeFiChain will offer the ability to invest in tokenized shares corresponding to the underlying price of listed stocks such as Apple, Tesla, Amazon, and GameStop.
The tokenized shares will be collateralized in cryptocurrency, so investors won’t have to go through intermediaries.
That is revealed by Bloomberg, which calls DeFiChain “a native decentralized finance blockchain for the Bitcoin network devoted to monetary applications and services.”
It is, in fact, a service that offers the possibility to invest and trade tokenized shares, using Nasdaq, Finnhub, and Tiingo feeds as a source for prices.
DeFiChain offers new investment possibilities
It is not the first service of this kind to be launched. Still, it is one of the first decentralized, and that does not provide for the management by a single entity that also operates as a broker or intermediary.
A similar service launched some time ago by Binance has been suspended permanently because the exchange in this way was acting as an intermediary, without the necessary authorizations.
Tokenized shares can also be purchased in fractions, and in the case of decentralized platforms such as DeFiChain, they can also be purchased by acquiring funds via decentralized loans.
The new DFI cryptocurrency
DeFiChain also has its native cryptocurrency, DFI, but it has not particularly benefited from the news.
After dropping two days ago from almost $3 to $2.6, its price managed to bring itself back almost to $2.8, only to fall again below $2.7.
To solve the problem related to stock exchange regulations, which led to the closure of Binance’s equivalent service, DeFiChain does not offer any ownership of the underlying asset, but only a tokenized representation of a stock that reflects, in part, the price of the underlying asset.
As a decentralized platform, it should be freely accessible to all, and in theory, uncensored. The service is accessible worldwide, beyond the existing geographical restrictions on investments in shares of US companies.
Exchanges will be active 24 hours a day, 7 days a week, and the promoters of the initiative promise low commissions on trades.
Other asset classes, including forex, commodities, and precious metals, will also be tokenized in the future.
DeFiChain co-founder Julian Hosp said:
“This will open the door to many people who are frustrated by traditional markets. As a community, we’re excited about that.”