DeFiChain users can now gain access to some stocks and exchange-traded funds (ETFs) via decentralised tokens.
DeFiChain, a decentralised proof of stake blockchain created as a hard fork of the Bitcoin network, announced the launch of four new decentralised tokens (dTokens).
The tokens are designed to grant users exposure to three stocks and an exchange-traded fund. The team said decentralised tokens for Walt Disney Co ($dDIS), iShares MSCI China ETF ($dMCHI), MicroStrategy Incorporated ($dMSTR) and Intel Corporation ($dINTC) are now live on DeFiChain and available for investors and traders.
In a press release shared with CryptoAdvisor, the DeFiChain team said its users will now be able to mint and trade the above dTokens. These four assets received the most support from the community members. Other options they could vote on included Mastercard Inc, Nintendo Co LTD, PayPal Holdings Inc, Twitter Inc, Uber Technologies Inc, and more.
Prasanna Loganathar, the Lead Engineer at DeFiChain, is excited about this latest development. Loganathar said;
“DeFiChain is continuously expanding the dToken universe to give users a serious alternative to the traditional financial broker – all whilst offering the flexibility and benefits of decentralization.”
In addition to the four recently added dTokens, DeFiChain also offers dTokens corresponding to the S&P 500, Tesla, Apple, Alibaba, GameStop, Nasdaq 100, Nvidia, Amazon, Microsoft, Netflix, Meta, and many other stocks and ETFs.
According to the DeFiChain team, the dTokens are not “securities” issued by a company or a large institution. This implies that users will gain price exposure to these assets but won’t enjoy ownership, voting rights, dividends, or other benefits available to stockholders.
Furthermore, the dTokens will not track and reflect the actual stock prices. Instead, they will track a number of variable factors and use oracles to capture the required feeds. DeFiChain added that;
“The price of dTokens may not always mirror the underlying asset’s price because of fluctuations in the supply and demand of dTokens.”
Furthermore, the dTokens can either be held as an investment, traded on the DeFiChain DEX, or used for Liquidity Mining on the DEX. DeFiChain users can mint the dTokens on the blockchain by depositing various coins, including BTC, DFI, dUSD, USDT or USDC, as collateral in the DeFiChain Vault.
DeFiChain has asked its community to vote to list other stocks as dTokens. These stocks include Mastercard Inc, Nintendo Co LTD, PayPal Holdings Inc, Twitter Inc, Uber Technologies Inc, and more.