- DeFiChain inked with Nasdaq, Finnhub, and Tiingo for price feeds of stocks
- DeFiChain users can trade tokenized version of blue-chip firms like Tesla, Apple, and Google
- REgulatory pressure from global financial agencies has not stopped DeFi advocates from inking new deals with legacy financial giants
DeFiChain is a decentralized finance (DeFi) based protocol. The platform is built. on the Bitcoin blockchain and allows its clients to trade tokenized versions of stocks. Recently, a report from the media outlet Bloomberg revealed that Nasdaq will be providing price feeds to the protocol along with Finnhub and Tiingo. Indeed, the user clients of the protocol can now trade the underlying price of blue-chip firms like Tesla, Amazon, and Google. The tokenized stocks of the firms will be similar to a now retraced offering launched by Binance earlier this year.
DeFiChain offers a decentralized stock trading system
DeFiChain allows its users to trade tokenized stocks. Similar to Binance, DeFiChain allows its users to acquire a fraction of the stocks without requiring investors to buy a full traditional share. For trading, the protocol makes use of its native token, DFI along with Bitcoin and USD Coin (USDC), the USD-pegged stablecoin.
According to Julian Hosp, the co-founder of the platform, such a way of offering stocks will open a door to several frustrations of the traditional financial world.
Turbulence months of tokenized assets seem over
In recent months, we have observed that the tokenized assets were facing some turbulence due to regulatory pressure. Last week, the United States Securities and Exchange Commission (SEC) was disclosed to be investigating Uniswap Labs, the firm behind the world’s largest decentralized exchange (DEX), Uniswap. Citing swelling regulatory concerns, the DEX had already dragged to delist several tokens and tokenized stocks.
Simultaneously, in July, sales of Binance’s incredibly prominent stock tokens, that depicted fractions of shares in firms like Tesla and Coinbase, were suddenly discontinued following similar pressure. The leading crypto exchange faced a hit from Hong Kong’s financial authority.
However, now it seems that the shaky few months are over. Seemingly, the hits from global financial agencies has not stopped DeFi advocates from inking new deals with legacy financial giants.
Tokenized assets can help make potential gains
Such versions of stocks are collateralized by digital assets and remove the requirement for a middleman. Such stocks could be purchased as decentralized loans. Notably, traders can buy or sell the tokenized assets 24/7. However, the purchase of such crypto-tokens does not confer ownership of the underlying crypto-tokens holder. Still, traders can profit from the fluctuation of the asset price.