It has been reported that DeFiChain offers to trade in tokenized stocks that correspond to the underlying price of major listed firms such as Tesla, Amazon, and Apple. The tokenized stocks, similar to a now-retracted offering rolled out by Binance earlier this year, can be purchased in fractions without requiring investors to purchase a full, traditional share, for which custody of a physical share certificate is required.
However, the tokenized stocks are collateralized by cryptocurrencies, removing the need for an intermediary, and can also be purchased in the form of decentralized loans. Available to trade 24/7, the purchase of a tokenized stock does not confer ownership of the underlying asset to its holder but rather allows them to potentially profit from the asset’s price movements.
The report said that the decentralized stock trading system offered by DeFiChain makes use of its native token, DFI, as well as Bitcoin (BTC) and United States dollar-pegged stablecoin USD Coin (USDC). The platform’s co-founder, Julian Hosp, said that the “offering will open the door to many people who are frustrated by traditional markets.” Yet advocates like Hosp will increasingly need to contend with the increased attention regulators are paying to the DeFi space.
Two weeks ago, the US Securities and Exchange Commission was revealed to be investigating the startup behind the world’s largest decentralized cryptocurrency exchange, Uniswap.
Thus, citing growing regulatory pressure, the platform had already moved to delist dozens of tokens and tokenized stocks in late July.