- Dinari raised $12.7M in Series A funding
- API lets users abroad buy U.S. stocks via tokens
- Most users come from Latin America, Africa, and Asia
Dinari, a crypto firm based in California, has developed a blockchain-based solution allowing non-U.S. investors to purchase shares in American companies. The company recently disclosed a $12.7 million Series A funding round, led by Hack VC and Blockchange Ventures. Additional investors included VanEck Ventures, F-Prime, and the Avalanche Fund. This latest funding round brings Dinari’s total capital raised to $22.65 million.
Dinari Funding Journey and Valuation
Dinari has attracted increasing attention from venture capital firms due to its approach in merging blockchain technology with traditional financial markets. The Series A round, finalized in April 2024, added $12.7 million to its balance sheet. According to Pitchbook, Dinari’s valuation was $40.15 million in 2024. The current valuation has not been made public. The company stated that it is generating revenue, though it opted not to disclose specific figures.
How Dinari API Enables Share Tokenization
Dinari operates by offering an API to digital banks and fintech platforms. These financial services pay a subscription fee to integrate Dinari’s software. Once integrated, end-users of these platforms can buy shares of U.S. companies—such as Apple—directly through their app interface. In return, users receive a blockchain-based token representing ownership of the purchased stock. Dinari acquires the corresponding real-world share from the U.S. stock market and holds it. This structure ensures that every token is backed one-to-one with the actual stock. The process aims to eliminate the complexity and cost associated with traditional depository receipts, which are often the only route for non-U.S. investors seeking access to American equities.
Dinari Expands User Base Across Latin America, Africa, and Asia
The company reports significant growth in Latin America, particularly in Argentina and Brazil. These regions have contributed a large portion of Dinari’s new users over the past year. Additionally, Dinari has initiated expansion efforts into Africa and Southeast Asia, tapping into markets with growing interest in foreign investment and limited access to U.S. financial products.
Comparison to Traditional Investment Methods
Currently, non-U.S. investors can use instruments like depository receipts, which represent shares in foreign companies and are issued by banks. However, these financial instruments are limited in scope and can involve high fees. Dinari offers an alternative by allowing direct access to the U.S. stock market through tokenized ownership, making the process more accessible and potentially more cost-effective for retail investors abroad.
Tokenization and Blockchain in the Investment Sector
The tokenization of securities has long been a goal for blockchain developers. Dinari’s model presents a working application of this concept, where blockchain technology is used to represent real-world equities. This idea isn’t new, but regulatory uncertainty in the U.S. has often hindered progress. Recently, there have been signals that the U.S. government is becoming more receptive to crypto innovation, possibly opening the door for similar models aimed at domestic investors.
Subscription-Based Revenue Model
Dinari’s monetization approach relies on charging a subscription fee to financial platforms that want to enable tokenized share trading for their users. This B2B (business-to-business) model allows Dinari to scale across multiple markets without directly acquiring individual retail customers. The use of APIs also enables smoother integration with existing fintech infrastructure.
Market Interest and Competitive Landscape
In addition to Dinari’s progress, other companies have begun revisiting the idea of tokenized securities. Coinbase, the largest crypto exchange in the U.S., recently announced renewed interest in this area. Although not directly competing with Dinari’s cross-border model, it signals broader market movement toward blockchain-enabled equity trading.
Regulatory Compliance and Use of Funds
Dinari stated that the $12.7 million raised in its Series A round will be allocated toward regulatory compliance in the countries it operates in. Given the cross-border nature of its services, aligning with financial regulations across multiple jurisdictions is critical. This includes anti-money laundering protocols, investor protection measures, and local securities regulations.
Conclusion
Dinari is building an infrastructure that makes it possible for non-U.S. investors to access the American stock market using blockchain technology. With $22.65 million raised to date, and a growing footprint in Latin America, Africa, and Asia, the company’s tokenized share model presents a notable shift in global investing. Through API-based partnerships with financial platforms, Dinari offers a scalable, regulation-conscious path forward for the digital transformation of equity ownership.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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