Brief
- Dinari is building a new blockchain-based stock index and putting it on-chain in collaboration with Chainlink.
- The company worked with the creator of the S&P 500 and the Dow Jones, S&P Dow Jones Indices, to create the index.
- The S&P Digital Markets 50 Index is comprised of 35 blockchain-related stocks and 15 major digital assets.
Tokenized actions Provider Dinari is collaborating with Chainlink to launch a new blockchain-focused stock index, the company announced Wednesday.
The S&P Digital Markets 50 Index built by Dinari with help from index provider S&P Dow Jones Indices, the maker of the S&P 500 and Dow Jones indices, is expected to launch before the end of the year.
“By powering the S&P Digital Markets 50 Index, Chainlink enables one of the first indexes to operate on-chain with verifiable, real-time index data that covers both traditional and digital assets,” said Fernando Vazquez, president of Capital Markets at Chainlink, in a statement.
The index is made up of 35 US-listed companies that have ties to blockchain and 15 major digital assets. However, an official list of assets has not yet been released and a representative for the companies did not immediately respond to Decrypt request for comment.
Once the index is created, Dinari will tokenize it using its tokenized shares platform, dShares, ensuring that each asset in the index is tokenized in a 1:1 ratio, with shares held by a regulated custodian.
Chainlink’s network will then provide real-time price and performance data, creating a transparent on-chain benchmark to match the off-chain index.
“Financial systems depend on reliable data and transparent infrastructure,” said Gabe Otte, co-founder and CEO of Dinari.
“Working with the S&P Dow Jones Indices and Chainlink allows us to bring the same level of reliability to tokenized benchmarks, ensuring that the S&P Digital Markets 50 operates with integrity and verifiability on-chain.”
Stock tokenization has been a key theme this year, reinforcing the entanglement of traditional financial systems and crypto.
This summer, tokenization company Backed introduced its xStocks feature allowing users to trade stocks in companies like Tesla and Apple directly on-chain and through popular centralized crypto exchanges.
Additionally, Robinhood unveiled its own tokenized stock offering for European users in June under the name Coinbase continues to consider launching a similar product.
Monday, index provider FTSE Russell announced it would use Chainlink to publish its market index data on blockchain networks. The decentralized Oracle network has joined the The US Department of Commerce will integrate macroeconomic data to blockchains as well.
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