Nasdaq’s feed, along with those of Finnhub, will power services on DeFiChain, a native decentralized finance blockchain for the Bitcoin network devoted to monetary applications and services. (Photo: Bloomberg)
The stock exchange will be among the companies delivering price feeds to a service offering tokenized stocks.
Nasdaq’s feed, along with those of Finnhub, will power services on DeFiChain, a native decentralized finance for the network devoted to monetary applications and services, according to a statement from the blockchain’s community group.
DeFiChain will offer tokenized stocks corresponding to the underlying price of listed companies such as Inc., Inc., com Inc. and GameStop Corp., the statement said. The tokenized stocks will be collateralized by cryptocurrencies, which means traders won’t have to go through an intermediary such as a broker, the statement said.
Tokenized stocks can be purchased in fractions in the form of decentralized loans. This system will power the stock trading mechanics on DeFiChain in a trustless manner and will use DeFiChain’s native digital currency — DFI — as well as and USD Coin, among other cryptocurrencies, according to the statement.
“This will open the door to many people who are frustrated by traditional markets,” said Julian Hosp, a co-founder of DeFiChain, in an interview Thursday. “As a community, we’re excited about that.”
DeFi tokenized stock trading doesn’t offer any ownership of the underlying asset. Instead, it is a tokenized representation of a stock that, in part, mirrors the underlying asset’s price. It can be traded 24 hours a day, seven days a week.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
First Published: Sun, September 12 2021. 23:39 IST