Dinari, a San Francisco-based startup, has secured a broker-dealer registration for its subsidiary, Dinari Securities LLC, from the Financial Industry Regulatory Authority (FINRA), making it the first tokenized equity platform to receive such approval in the United States. This milestone, announced on June 26, 2025, allows Dinari to legally offer blockchain-based stock trading, known as dShares, to U.S. investors.
These dShares are tokenized representations of U.S. equities and ETFs, fully backed one-to-one by the underlying securities, and have been available to international users on platforms like Coinbase’s Base blockchain network since 2023. Unlike retail brokerages such as Robinhood or Charles Schwab, Dinari operates a “white label rails” model, integrating its trading and custody infrastructure into third-party platforms like fintech apps and brokerages via APIs, rather than serving customers directly.
The company plans to operationalize its broker-dealer entity in the coming quarter, pending final onboarding with the U.S. Securities and Exchange Commission (SEC). Dinari’s CEO, Gabriel Otte, emphasized that this approval is a step toward creating a legal tokenized stock standard in the U.S., with the long-term goal of building a fully on-chain financial system, including exchanges.
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Tokenized equities convert traditional shares into digital tokens on a blockchain, offering benefits like reduced trading costs, faster settlement times, and 24/7 trading access. However, challenges such as limited secondary-market liquidity and the lack of unified global standards remain, as noted by the World Economic Forum.
Dinari’s framework aims to address these by providing a compliant model for regulators and industry groups to reference. The company has secured undisclosed partnerships and will publish updated technical specifications for its ERC-20-based share contract before the U.S. launch. This development positions Dinari ahead of competitors like Coinbase and Kraken, which are also pursuing tokenized equity offerings but have not yet received similar approvals.
The move signals a shifting regulatory landscape, potentially paving the way for broader adoption of tokenized financial assets in the U.S. Dinari’s U.S. broker-dealer registration for its tokenized equities platform, Dinari Securities LLC, carries significant implications for the financial industry, blockchain technology, and regulatory frameworks. As the first tokenized equity platform to gain FINRA approval, Dinari sets a benchmark for regulatory compliance in the U.S., potentially encouraging other firms to pursue similar approvals. This could normalize tokenized securities within traditional financial systems.
The registration enhances credibility for tokenized assets, addressing skepticism about their legitimacy. This may attract more institutional and retail investors to blockchain-based financial products. Dinari’s “white label rails” model, integrating with third-party fintech apps and brokerages, could make tokenized equities accessible to a wider audience, bypassing traditional retail brokerages like Robinhood.
While already serving international users, U.S. approval expands Dinari’s market, potentially increasing liquidity and adoption of dShares, which are backed one-to-one by underlying securities. Tokenized equities on blockchain (e.g., Coinbase’s Base network) enable faster settlement times, lower trading costs, and 24/7 trading, challenging traditional market infrastructures with T+2 or T+1 settlement cycles.
Dinari’s API-driven approach fosters integration with existing financial platforms, potentially accelerating the adoption of blockchain technology in mainstream finance. Dinari’s approval positions it ahead of competitors like Coinbase and Kraken, which are exploring tokenized securities but lack similar regulatory clearance. This could attract partnerships and investment. The approval may push other brokerages and exchanges to innovate or seek similar tokenized offerings to remain competitive.
Dinari’s compliance with SEC and FINRA requirements provides a model for regulators to refine tokenized asset standards, potentially influencing future policies on digital securities. By publishing updated technical specifications for its ERC-20-based share contract, Dinari could contribute to global standardization efforts, addressing current fragmentation in tokenized asset frameworks, as highlighted by the World Economic Forum.
Tokenized equities face limited secondary-market liquidity, which could hinder widespread adoption unless Dinari’s partnerships significantly boost trading volume. As a pioneer, Dinari may face ongoing regulatory oversight, with any missteps potentially impacting the broader tokenized asset industry. Operationalizing the broker-dealer entity and managing partnerships will test Dinari’s ability to scale while maintaining compliance and security.
Dinari’s goal of a fully on-chain financial ecosystem, including exchanges, aligns with broader blockchain trends. Success could inspire a shift toward decentralized finance (DeFi) models in traditional markets. The approval may spur further innovation in tokenized assets, such as bonds or real estate, diversifying investment options.
Dinari’s registration is a pivotal step toward mainstreaming tokenized equities, with implications for regulatory frameworks, market accessibility, and technological innovation. However, challenges like liquidity and regulatory hurdles remain critical to its long-term success.