The world of finance is undergoing a seismic shift, and Dinari is at the forefront of this transformation. The San Francisco-based fintech startup, known for its blockchain-based U.S. stock trading services, is launching the Dinari Financial Network—a Layer 1 (L1) blockchain designed to revolutionize how tokenized securities are traded and settled across multiple networks. Built using Avalanche’s high-performance technology stack and designed to coordinate with platforms like Arbitrum, this omni-chain orderbook is poised to redefine global access to U.S. equities. With over $22.65 million in funding and a compliance-first approach, Dinari’s ambitious move could bridge traditional finance (TradFi) and decentralized finance (DeFi) like never before. Let’s explore what this launch means, how it works, and why it’s a pivotal moment for the future of capital markets.
A New Standard for Tokenized Securities
Dinari’s mission has always been clear: democratize access to U.S. equities for investors worldwide. Since its founding in 2021, the company has offered dShares™—tokenized, 1:1 backed representations of U.S. stocks and ETFs like Apple (AAPL), Tesla (TSLA), and the SPDR S&P 500 ETF (SPY). These tokens, available in over 85 countries, allow global investors to tap into the $40 trillion U.S. equities market without navigating complex brokerage systems or geographic barriers. But Dinari’s vision goes beyond just tokenizing assets—it’s about creating a seamless, scalable infrastructure for trading and settling these assets across blockchains.
Enter the Dinari Financial Network, a custom-built L1 blockchain launched on August 14, 2025, powered by Avalanche’s technology. Unlike traditional blockchains focused on general-purpose transactions, this network is purpose-built as a coordination and settlement layer for tokenized securities issued on various chains, such as Arbitrum and Ethereum. Think of it as a digital equivalent of the Depository Trust & Clearing Corporation (DTCC) in TradFi—a neutral, transparent hub that ensures liquidity, compliance, and efficiency across fragmented markets. By leveraging Avalanche’s sub-second finality and institutional-grade controls, Dinari aims to deliver 24/7 trading with global reach, all while meeting stringent regulatory standards.
Why Avalanche? The Tech Behind the Vision
Choosing Avalanche as the foundation for the Dinari Financial Network was no accident. Avalanche’s architecture, known for its high throughput and near-instant transaction finality, is ideal for financial applications requiring speed and reliability. Its customizable L1 framework allows Dinari to tailor the blockchain to the specific needs of tokenized securities, ensuring compliance automation, programmable restrictions, and seamless integration with DeFi and institutional partners. As Morgan Krupetsky, VP of Ecosystem Growth at Ava Labs, noted, “Avalanche’s highly customizable architecture and institutional-grade controls enable Dinari to launch a purpose-built environment for compliant equity trading.”
The network’s omni-chain approach is a standout feature. It’s compatible with multiple blockchain ecosystems, meaning dShares issued on Arbitrum, Ethereum, or other networks can be settled and traded through Dinari’s L1 without liquidity fragmentation. This interoperability tackles a key pain point in tokenized asset markets, where assets on different chains often lack unified liquidity pools. By using Avalanche’s InterChain Messaging (ICM) and AvaCloud, Dinari ensures that trades settle instantly, fees remain transparent, and compliance is baked into the system—making it a game-changer for fintechs, neobanks, and global investors.
dShares: The Heart of Dinari’s Ecosystem
At the core of the Dinari Financial Network are dShares, Dinari’s tokenized securities. These ERC-20 tokens are fully backed by real U.S. stocks and ETFs, held securely by custodians like Gemini and BitGo. Unlike speculative crypto assets, dShares retain all shareholder rights, including dividends and corporate actions (where permissible), and are issued under a compliance-first framework with KYC, AML, and third-party audits. With over 150 U.S. stocks and ETFs available—including heavyweights like NVIDIA (NVDA), Alphabet (GOOGL), and MicroStrategy (MSTR)—dShares make U.S. equities accessible to investors in regions like Latin America, MENA, and Southeast Asia, where traditional brokerage access is limited.
The Dinari Financial Network takes dShares to the next level by enabling instant settlement and composability with DeFi protocols. For example, a fintech platform can integrate dShares via a single API, offering users tokenized stocks without building complex infrastructure. This programmability allows developers to create innovative financial products, like lending protocols or yield-generating strategies, using tokenized equities as collateral. The network’s validator governance, supported by industry leaders like Gemini, VanEck, and WisdomTree, further ensures trust and resilience, making it a robust platform for institutional adoption.
Regulatory Milestones Paving the Way
Dinari’s launch comes on the heels of a major regulatory win: approval from the U.S. Securities and Exchange Commission (SEC) to operate as a stock broker using decentralized networks. This makes Dinari the first U.S. platform to offer blockchain-based shares of public companies to domestic investors, with its tokenized stock trading platform set to go live in Q4 2025 following FINRA onboarding. The company is also a registered Transfer Agent with the SEC, reinforcing its commitment to compliance.
This regulatory clarity is a big deal. Tokenized assets have long faced scrutiny due to concerns over investor protection and market manipulation. Dinari’s SEC approval signals a shifting landscape, potentially paving the way for broader adoption of real-world asset (RWA) tokenization. As Chas Rampenthal, Dinari’s Chief Legal Officer, put it, “Our platform democratizes access to the U.S. equities market, offering a simple, secure, and cost-effective way for global investors to participate.” By embedding compliance into its blockchain infrastructure, Dinari is setting a new standard for regulated tokenized securities.
The Funding Boost: Scaling Global Access
Dinari’s ambitions are backed by serious capital. In May 2025, the company raised $12.7 million in a Series A round led by Hack VC and Blockchange Ventures, with participation from VanEck Ventures, F-Prime, and Avalanche’s Blizzard Fund, bringing its total funding to $22.65 million. This capital injection will fuel Dinari’s expansion into new markets, enhance its compliance infrastructure, and scale the Dinari Financial Network to handle growing global demand. The involvement of heavyweights like VanEck and Gemini underscores confidence in Dinari’s ability to bridge TradFi and DeFi.
The timing is perfect. Demand for tokenized RWAs is soaring, with over $250 million in real estate and other assets coming on-chain via Avalanche in 2025 alone. Dinari’s focus on equities taps into a massive market opportunity, as U.S. stocks remain a cornerstone of global investment portfolios. By simplifying access for fintechs and neobanks, Dinari is positioning itself as the go-to infrastructure layer for programmable finance.
Challenges and Competition on the Horizon
Despite its promise, the Dinari Financial Network faces hurdles. Competing with established TradFi players like Charles Schwab or Fidelity requires not just technological innovation but also widespread adoption. Blockchain-based trading is still nascent, and user education will be critical to onboard retail and institutional investors. Additionally, while Avalanche’s tech offers speed and scalability, competitors like Ethereum and Solana are also vying for dominance in RWA tokenization. Dinari’s omni-chain approach mitigates this by integrating with Arbitrum and Ethereum, but maintaining interoperability without compromising performance will be a technical challenge.
Regulatory risks also loom. While Dinari’s SEC approval is a milestone, evolving regulations in the U.S. and abroad could impact operations. A sudden crackdown on tokenized assets or DeFi integrations could slow adoption. However, Dinari’s compliance-first approach and validator governance give it a strong foundation to navigate these uncertainties.
The Future of Finance: Programmable and Global
The Dinari Financial Network is more than a blockchain—it’s a vision for the future of capital markets. By enabling 24/7 trading, instant settlement, and global access, Dinari is breaking down barriers that have long excluded billions from the U.S. equities market. As Gabe Otte, Dinari’s CEO, said, “The future of equities is global, programmable, and always available.” This launch aligns with broader trends on Avalanche, from BlackRock’s tokenized money market fund to Visa’s stablecoin settlement network, showing that blockchain is becoming the backbone of modern finance.
For investors, the implications are profound. Imagine buying tokenized Tesla shares from a neobank in Nigeria or using dShares as collateral in a DeFi protocol. For fintechs, Dinari’s API-driven model means faster launches and new revenue streams. And for the crypto ecosystem, the Dinari Financial Network proves that blockchain can deliver real-world value without compromising on trust or compliance.
A Milestone for Tokenized Markets
Dinari’s launch of the Dinari Financial Network marks a turning point for tokenized securities. By combining Avalanche’s cutting-edge technology with a compliance-first approach, Dinari is building a bridge between TradFi and DeFi that could redefine how we invest. As the network rolls out in late 2025, all eyes will be on its ability to deliver on its promise of unified liquidity, global access, and programmable finance. If successful, Dinari could set the standard for the next generation of capital markets—open, transparent, and borderless.
Sources:
- Dinari Raises $12.7M Series A to Bring U.S. Equities Onchain: dinari.com
- Dinari Launches the Dinari Financial Network: avax.network
- Dinari Secures SEC Approval for Tokenized Stock Trading: ainvest.com
- Avalanche-Powered Dinari Financial Network: coindesk.com
- Posts on X about Dinari’s launch:
