Dinari, a U.S.-based innovator in tokenized public securities, is preparing to unveil its own blockchain, the Dinari Financial Network. Slated for a public launch in the coming weeks, this endeavor reflects a burgeoning trend among fintech and crypto firms to construct proprietary blockchain infrastructures. Dinari’s game plan? To become the go-to settlement and coordination layer for tokenized stocks, aiming for the prestige of the Depository Trust and Clearing Corporation (DTCC) in the crypto world.
Tokenizing the Future of Trading
Dinari is stepping into a red-hot arena. Tokenized equities are shaking up traditional trading paradigms, promising around-the-clock trading, lightning-fast settlements, and slashed costs. Gabe Otte, Dinari’s CEO and co-founder, explained in an interview with CoinDesk, “Our new blockchain will be the backbone of our settlement and clearing system, transitioning much of our processes from off-chain to on-chain.”
With the test net already live, Dinari is gearing up for a significant shift. Their chain will act as a hub, facilitating trades across various networks such as Arbitrum, Base, Plume, and soon, Solana. This infrastructure, crafted using Avalanche’s stack, seeks to unify trades without fragmenting liquidity—a crucial step in managing the $100 trillion stock market’s transition to blockchain rails. As explored in our recent coverage of GSR and DigiFT’s OTC trading initiative, the tokenized real-world asset market is rapidly expanding, highlighting the growing interest in such innovations.
Why Go Proprietary?
The move to build a proprietary Layer 1 blockchain isn’t just a whim. It’s a necessity, according to Otte. “Public chains often fall short when it comes to the compliance needed for securities,” he noted. Dinari wants to sidestep these limitations by fostering a network that pulls liquidity together, instead of scattering it across disparate chains.
This approach aligns with recent moves by other big names—Circle and Stripe among them—who are also developing their own blockchains. The drive? An insatiable need for control over compliance, uptime, and seamless integration with traditional finance systems. As more firms realize the limitations of existing public blockchains, the allure of proprietary networks grows stronger. Similarly, Animoca’s launch of the NUVA marketplace aims to address fragmentation in the real-world asset sector, underscoring a broader industry trend towards consolidation and efficiency.
Morgan Krupetsky, VP of ecosystem growth at Ava Labs, highlighted the advantage of using Avalanche: “Ava Cloud lets businesses spin up and customize blockchains for their needs,” offering flexibility and control over transaction costs—a luxury not afforded by all platforms.
Building a Neutral Clearinghouse
Dinari envisions its network as a “neutral clearinghouse” for the tokenization industry. Initial governance will be managed by a consortium of heavyweights, including Gemini, custodian BitGo, and asset manager VanEck. These institutions will not only validate but also provide custody services, ensuring a robust and secure ecosystem.
Otte hinted at plans for future decentralization, mentioning the potential launch of a governance token. The aim is to eventually hand over the reins to a decentralized community, fostering an inclusive environment for stakeholders.
Broader Implications and Questions
As Dinari steps into this new chapter, the implications for the broader crypto market are profound. The firm’s ambition to mirror the DTCC’s role in securities clearing and settlement could redefine how equities are traded globally. Yet, questions linger: Can this trend towards proprietary blockchains sustain its momentum? And how will traditional finance entities respond to these seismic shifts?
While the future is uncertain, one thing is clear—Dinari’s foray into proprietary blockchain is a sign of the times. As the crypto landscape evolves, firms like Dinari are not just participants; they are the architects of a new trading frontier.
Source
This article is based on: Tokenization Firm Dinari to Launch L1 Blockchain, Aims to Be the ‘DTCC of Tokenized Stocks’
Further Reading
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- Hyperliquid drives $487B July surge in decentralized crypto trading
- Coinbase Rolls Out DEX Trading on Its App Starting With Base—And Solana ‘Coming Soon’
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
