During the last few months, the unstable behavior of tokenized stocks has been witnessed from the perspective of regulation. However, it has not halted the pace by which the advocates of DeFi (decentralized finance) and the financial giants are making new contracts. It was reported today by Bloomberg that Nasdaq, Tiingo, and Finnhub will be offering the price feeds thereof to DeFiChain (a decentralized finance platform structured on the BTC network).
DeFiChain provides trading through tokenized stocks. This parallels the essential price of prominent listed firms such as Amazon, Apple, and Tesla. These tokenized stocks, just like a presently-withdrawn service launch on behalf of Binance in the initial period of this year, can be bought in segments without demanding investors to buy a complete share (as was done traditionally). Then, the cryptocurrencies are utilized to collateralize such tokenized stocks by eliminating the requirement for some intermediary. These stocks can be bought as decentralized loans.
Additionally, the availability of these stocks to be traded is 24/7. It is noteworthy that if any of these tokenized stocks is acquired by a person, it does not mean that the person purchasing it owns it. He is only permitted to make a profit through the price movements of the asset. The decentralized system of stock trading that DeFiChain has offered utilizes a local token called DFI along with the others like BTC as well as the USDC (USD Coin), which is a stablecoin pegged by dollar. The co-founder of the platform, Julian Hosp, stated that a new way would be open to numerous people who have been unsatisfied by the conventional markets.
In the last week, it was revealed by the SEC (Securities-and-Exchange-Commission) of the United States that it would initiate the investigation of the startup at the back of Uniswap (the biggest crypto exchange across the globe). The platform highlighted a mounting regulatory pressure due to which it had, in advance, delisted many of the tokens as well as tokenized stocks during the later period of July.
Recently this month, trade of the exceedingly famous stock tokens of Binance, which expressed equity-shares divisions in companies like Coinbase and Tesla, was abruptly terminated because of the pressure that the securities regulator of Hong Kong exerted over them. Some previous reports suggest that British and European regulators had also been examining the services for the probable infringement of the securities laws.