Introduction

Traditional assets such as stocks, bonds, and ETFs have always played a central role in the global financial market. However, the trading and management of these assets remain constrained by several limitations, including high entry barriers, low liquidity, and a lack of transparency. With the rise of blockchain technology and decentralized finance (DeFi), tokenizing real-world assets (RWA) is being seen as a bridge connecting traditional finance with emerging technologies.

As an innovator in the RWA space, Dinari is committed to bringing traditional financial assets into the blockchain world. Its core product, the dShare platform, leverages smart contracts and 1:1 asset backing to offer global users new ways to engage with traditional financial assets. This article delves into the inception and development of Dinari, its operational mechanisms, fee structure, and value analysis, uncovering its innovations and potential in the RWA field.

Why Do RWA and DeFi Need Dinari?

Real-world assets (RWA) have always been a cornerstone of traditional finance, encompassing real estate, commodities, artworks, bonds, and stocks. However, the conventional methods of trading and managing these assets are fraught with limitations:

• Insufficient Liquidity
  Many RWA, such as real estate and artwork, suffer from low liquidity, making it challenging to convert them into cash quickly.

• High Entry Barriers
  Investing in these assets typically requires substantial capital, making it difficult for ordinary investors to participate.

• Low Transaction Efficiency
  Traditional trading processes are cumbersome, with lengthy settlement times that drive up transaction costs.

• Lack of Transparency
  Information asymmetry and the involvement of intermediaries result in opaque transaction processes, increasing trust-related costs.

The emergence of blockchain technology and decentralized finance (DeFi) offers new approaches to address these challenges. Through tokenization, RWA can be converted into digital assets on the blockchain, enhancing liquidity, lowering entry barriers, and improving transaction efficiency.

Tokenizing RWA significantly increases the liquidity and accessibility of assets. Tokenization allows large assets to be divided into smaller units, enabling broader investor participation and enhancing liquidity. Additionally, blockchain’s immutability and transparency ensure reliable transaction records, reducing risks of fraud and error.

In terms of trading and settlement, RWA tokenization leverages the automated execution of smart contracts to minimize manual intervention, accelerating transaction speed and settlement efficiency. Furthermore, the borderless nature of blockchain allows global investors to participate in RWA investments, expanding market scale and depth.

As DeFi rapidly evolves, relying solely on cryptocurrencies and digital assets is no longer sufficient to meet the ecosystem’s growing needs. Introducing RWA not only diversifies the range of assets within DeFi but also offers investors more stable income sources, balancing the high volatility of digital asset markets.

Dinari addresses this gap between traditional finance and DeFi by bringing real-world securities onto the blockchain, catering to the market’s increasing demand for RWA investments.

The Birth and Development of Dinari

Founded in 2021 and headquartered in California, USA, Dinari aims to bring traditional financial assets into the blockchain world. The company is dedicated to creating a more open, transparent, and efficient global financial system, offering users new ways to participate in traditional financial assets worldwide. Dinari’s founding team consists of key figures with diverse expertise:

• Gabriel Otte
  Co-founder and CEO, previously founded the biotech company Freenome. Otte combines his experience in biotechnology and blockchain technology to drive Dinari’s growth.

• Jake Timothy
  Co-founder and CTO, with an extensive technical background, formerly worked at Northrop Grumman, focusing on data science and software engineering.

• Chas Rampenthal
  Co-founder and Chief Legal Officer, with 16 years of experience in legal and compliance roles. Rampenthal previously worked at LegalZoom, overseeing the company’s journey from startup to IPO.

Since its inception, Dinari has secured multiple rounds of funding. In August 2023, the company announced the completion of a $7.5 million seed round. Investors included SPEILLLP (a subsidiary of Susquehanna International Group), 500 Global, former Coinbase CTO Balaji Srinivasan, Third Kind Venture Capital, Sancus Ventures, and Version One VC. By January 2024, Dinari raised an additional $10 million in a second seed round, with participation from Alchemy, Version One Ventures, and Sancus Ventures.

Backed by investors with deep expertise in finance and technology, Dinari has actively expanded its business scope. In 2024, Dinari launched its flagship product, the dShare platform, on the Arbitrum One network, offering global users tokenized stocks, bonds, and ETFs. The company continuously broadens the range of supported assets, including technology stocks, energy stocks, commodity ETFs, and Bitcoin spot ETFs, catering to investors’ diverse needs.

Dinari’s Core Platform and Operational Mechanism

The dShare platform is Dinari’s flagship product, enabling users to trade tokenized securities on the blockchain. By leveraging smart contracts and automated systems, the platform converts traditional securities into blockchain-based tokens known as dShares. Key features of the dShare platform include:

1:1 Asset Backing

Each dShare token is fully backed by Dinari’s reserve assets at a 1:1 ratio, ensuring its value is directly linked to its corresponding real-world asset.

Diverse Offerings

The platform supports over 50 stocks, including prominent companies like Apple, Amazon, Microsoft, and Tesla. Additionally, it offers tokenized access to Bitcoin spot ETFs, gold, silver, corporate bonds, and Ethereum trust funds, among other assets.

Dividend Distribution

Holders of dShares can receive dividends and distributions identical to those of the underlying securities. These payouts are distributed in USDC directly to users’ wallets.

Efficient and Convenient Trading

The platform supports trading with stablecoins like USDC and USDT, eliminating the need for native tokens to cover gas fees. This feature simplifies the user experience and enhances accessibility.

Trading on Dinari involves several steps designed to ensure regulatory compliance, user convenience, and transparency:

1. User Registration and Verification

Before trading, users must register an account on the Dinari platform and complete the Know Your Customer (KYC) verification process to meet regulatory requirements. The Kinto ecosystem manages this process, which ensures the privacy and security of user data.

1. Fund Preparation

Users can trade using stablecoins such as USDC and USDT. Additionally, Dinari offers the USD+ yield stablecoin, allowing users to:

• Convert their funds into USD+ to earn automatic interest.
• Benefit from reduced transaction fees during trading.

1. Purchasing dShares

• Placing Orders: Users can select desired assets and submit purchase orders during trading hours.
• Asset Acquisition and Token Minting: Dinari purchases the corresponding securities in the traditional securities market and deposits them into regulated custody accounts, such as Alpaca Securities LLC and Interactive Brokers Group Inc. After the asset purchase and settlement, Dinari mints the equivalent number of dShares using smart contracts and issues them to the user.

1. Holding and Earning Returns

• Asset Holding: dShares represent the user’s economic rights to the securities assets.
• Dividends and Returns: If the underlying securities distribute dividends, Dinari converts them into USDC and deposits them directly into the user’s wallet.

1. Selling and Withdrawing

• Selling dShares: Users can submit sell orders during trading hours. Dinari will repurchase the dShares and pay the corresponding amount in stablecoins.
• Funds Withdrawal: Users can withdraw their funds to their wallets or reinvest them in other opportunities.

1. Transaction Costs

Dinari employs a transparent fee structure, ensuring users clearly understand the costs associated with trading. Transaction costs may vary depending on the blockchain used.

Compared to traditional U.S. stock trading platforms, Dinari offers significantly lower fees, making it especially attractive for small-scale investors. Traditional platforms often impose high fees for deposits and withdrawals, whereas Dinari users only need to pay blockchain gas fees, typically less than $1. Additionally, trading with Dinari’s yield stablecoin USD+ provides fee reductions.

According to CoinGecko, the trading price of Dinari’s USD+ token fluctuates around $1.

Source: CoinGecko

Dinari prioritizes security and regulatory compliance:

• KYC Verification: Users must complete KYC procedures to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.
• Regulated Custodial Partners: Dinari collaborates with regulated custodial institutions to securely store the underlying securities assets.
• Third-Party Audits: Regular audits are conducted by third-party organizations, including the Big Four accounting firms, enhancing the platform’s transparency and trustworthiness.
• SEC Registration: Dinari is registered with the U.S. Securities and Exchange Commission (SEC) as a transfer agent, ensuring its operations adhere to legal standards.
• Global Regulatory Compliance: The company works with regulators worldwide to meet jurisdiction-specific requirements.

Value Analysis of Dinari

Dinari, through its dShare platform, has successfully brought traditional securities onto the blockchain, bridging traditional finance with the DeFi ecosystem and delivering significant benefits.

By lowering investment barriers and transaction costs, Dinari enables more investors to access global markets with reduced capital. At the same time, the transparency and automation of smart contracts enhance transaction efficiency and user experience. Additionally, introducing real-world assets (RWA) diversifies DeFi’s asset offerings, providing stable and varied investment options that attract traditional financial investors and balance the volatility of digital asset markets.

However, Dinari faces challenges, including regulatory uncertainty, technological risks, market competition, and the need for user education. To ensure long-term success, the company must focus on continuous innovation, compliance with evolving regulations, and expanding its market and asset offerings. By addressing these challenges, Dinari highlights the transformative potential of RWA tokenization and positions itself as a leader in the future of blockchain-powered finance.

Conclusion

As an innovator in bringing real-world assets (RWA) to the blockchain, Dinari is integrating traditional finance with emerging technologies. Through its dShare platform, Dinari provides global investors new opportunities to engage with assets such as stocks, bonds, and ETFs, lowering transaction barriers and enhancing efficiency.

Dinari’s innovations in the RWA sector address the growing demand for diversified assets and inject fresh momentum into the DeFi ecosystem. However, the path to success is not without challenges. Dinari must continuously monitor the regulatory landscape, maintain technological leadership, expand its market presence, and enhance user education. Active collaboration with regulatory bodies to ensure compliant operations will further solidify its leadership in the RWA space.

Overall, Dinari’s model showcases the immense potential of RWA tokenization and represents a new direction in financial market development. Amid the global wave of financial digitization, Dinari is well-positioned to become an industry leader and contribute to the creation of a more open, transparent, and efficient financial system.

Investing in cryptocurrency markets involves high volatility and risk. Before making any investment decisions, conduct thorough research and consider your risk tolerance. This article does not constitute financial advice—proceed with caution.