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The New York-based stock exchange of NASDAQ (NDAQ) is making quite the buzz as of late as reports suggest that it will be joining financial data platforms Finnhub in providing services to DeFiChain. The exchange made it known on Thursday that they teamed up with the blockchain-based decentralized financial services.
NASDAQ-Finnhub-team up
It was noted that NASDAQ will be offering price feed alongside the aforementioned firms to DeFiChain’s services. Further, this latest venture aims in presenting tokenized stocks to the underlying price of the United States-listed big companies like Tesla (TSLA), GameStop (GME), Amazon (AMZN), and Apple (AAPL).
DeFiChain co-founder on recent developments
Further, cryptocurrencies are said to collateralize such assets. In line with this, DeFiChain Co-Founder Julian Hosp said that it will be opening the door to many people who are by now pretty much irked by the traditional markets adding that as a community, they’re excited about that.
Now, these tokenized stocks – as above-mentioned – will be collateralized by cryptos, as this will be removing the necessity for an intermediary. Also, this type of stock can be purchased in the form of decentralized loans. It’s also worth noting that the purchase of these tokenized stocks does not confer ownership of the underlying asset to its holder. Instead, it enables them to potentially profit from the asset’s price movements.
The service is said to be utilizing DeFiChain’s native token dubbed DFI, together with bitcoin (BTC), USD coin (USDC), and other cryptocurrencies. For the uninitiated, NASDAQ has been active in making such partnerships as this has been observed by financial pundits for several months now.
NASDAQ and private banks
In July alone, the second-largest stock exchange by market capitalization ($19.4 trillion) has collabed with private banks such as Goldman Sachs (GS), Morgan Stanley (MS), SVB Financial Group (SIVB), and Citi (C). These partnerships aim to form a joint venture to put up what is called a secondary trading venue of private company stocks.
SEC investigates
This past week, the U.S. Securities and Exchange Commission is said to be keeping an eye on the startup that is behind the biggest cryptocurrency exchange – Uniswap. As a result, back in July, the platform opted to delist a number of tokens and tokenized stocks due to regulatory pressure.
In the same month, the stock token sales within the Binance platform were suspended after regulators from Europe, United Kingdom, and Hong Kong have been investigating the offering for potential non-compliance with securities laws. These stock tokens are extremely popular as they represent fractions of equity shares in firms like Coinbase.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
