With Tens of Millions in Funding, Can Dinari Become a Convenient Channel for Trading U.S. Stocks?
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With Tens of Millions in Funding, Can Dinari Become a Convenient Channel for Trading U.S. Stocks?
High fees, limited quotas, only suitable for small-scale asset allocation.
Navigating Web3 tides with focused insightsBy Nan Zhi, Odaily Planet Daily
Dinari, a blockchain-based securities investment platform, announced on X that it raised $10 million in seed funding during Q4 2023. The round was backed by 500 Global, Balaji Srinivasan (former CTO of Coinbase), Alchemy, Version One Ventures, Sancus Ventures, and others.
Dinari has launched 1:1 asset-backed RWA products for U.S. stocks and bonds on Arbitrum One, and today added more than 10 new products.
Business Overview
Dinari is a Web3 securities trading platform enabling users to trade traditional financial assets such as stocks, bonds, and ETFs on the blockchain. Dinari tokenizes these securities into "dShares" via smart contracts, with fully automated processes that allow seamless, frictionless trading.
Currently operating exclusively on Arbitrum, Dinari supports USDC, USDC.e, and USDT for transactions. Gas fees are paid in stablecoins, eliminating the need for native tokens like ETH.
As of January 24, 2024, Dinari has launched 33 dShares, including blue-chip stocks such as Apple, Amazon, Microsoft, and NVIDIA; recently approved spot Bitcoin ETFs such as IBIT, BITB, and HODL; and niche offerings like Coinbase and WisdomTree's floating-rate Treasury fund.
According to Dinari’s official website, the platform holds 19 reserve assets totaling $234,000, with Coinbase stock (COIN) accounting for 56% ($131,000).
Geographic Restrictions
All users must complete KYC verification before trading on-chain. Due to U.S. SEC and Office of Foreign Assets Control (OFAC) regulations, services are not available in mainland China, the United States, Canada, North Korea, and certain other regions.
Dinari states that Dinari, Inc., the entity responsible for purchasing underlying securities, is a transfer agent registered with the U.S. SEC and will update the restricted list as required.
Operational Details
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Basic Process: Users can only place market orders during U.S. market hours. After an order is placed, Dinari executes a 1:1 purchase on the relevant market. Once settlement is complete, corresponding tokens are minted and distributed to users. Dinari notes that large trades may take 1–2 days to process, with the current threshold for large trades set at $5,000.
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Dividend Distribution: Dinari supports dividend payouts. Based on snapshots taken at 4:00 AM Eastern Time on the ex-dividend date of the underlying stock or ETF, the project treasury converts received fiat into USDC and distributes it to user wallets. Users who purchased dShares through other platforms can still receive dividends if they register a Dinari account within 90 days.
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Stock Splits: Dinari has built a migration mechanism to adjust user holdings according to actual stock splits, ensuring accurate representation of user assets.
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No Shareholder Rights: All underlying securities are held directly by Dinari; users do not possess shareholder rights.
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Trading Fees: A flat $1 fee applies for purchases. Sales incur a fixed $1 fee plus a variable 0.5% fee.
Conclusion
Mirror, a synthetic securities platform in the Terra ecosystem, once achieved a TVL of $2 billion. Last year, AXE CAP, a Telegram bot offering synthetic securities, reached a market cap of approximately $14 million. Compared to these, Dinari still has significant room for growth (currently $200,000). While accessible to most global users, Dinari faces challenges such as relatively high fees and transaction limits, making it more suitable for small-scale asset allocation.
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