The decentralized stock trading platform Dinari, which uses blockchain technology to provide access to securities and stocks using blockchain technology, today announced it has closed a $7.5 million seed round to fuel the launch of the company’s dShare platform outside the United States.

Backing for the company’s funding came from investors including Third Kind Venture Capital, SPEILLLP, 500 Global, 500 Global, Balaji Srinivasan, Sancus Ventures and Version One VC.

Dinari’s technology, the dShare platform, provides what the company calls Dinari securities backed tokens using decentralized blockchain technology that “tokenizes” securities and shares in recognizable companies such as Google LLC, Apple Inc. and Nvidia Corp., so they’re more accessible to more people.

Each token is backed one-to-one by Dinari’s reserves and uses the immutable nature of blockchain technology to track the exchange and transaction of the shares. Although the platform is not accessible to U.S.-based customers, Dinari is registered with the U.S. Securities and Exchange Commission as a transfer agent as of 2022 and is pursuing more licenses expand its offerings with this additional capital.

Asset tokenization using blockchain technology is not a new concept and has been explored for years by various firms. Blockchain-based crypto assets, or tokens, can be used to track transfers digitally and record ownership of private securities, such as shares in a company or property.

Examples include tracking wines by Fine Wine Capital AG, which used Syngum’s digital ledger solution to produce blockchain tokens to track wine assets in Swiss markets. RealBlocks similarly has developed a blockchain-based real estate investment platform that tokenizes properties to turn them into tradable securities.

For companies, Dinari provides what it calls “automated cap table management” that’s designed to save thousands in dollars in legal fees for startups looking to grant stock and maintain compliance, no matter where they might be in the world. The blockchain-based solution will provide compliance, bookkeeping and maintenance of the company’s stock and it uses the immutable digital ledger’s immutable and tamperproof technology’s auditability to preserve trust.

“We created Dinari to make cap table management seamless and easy,” said Chas Rampenthal, co-founder and chief legal officer of Dinari. “We use automation the same way LegalZoom does — to simplify and speed up an otherwise cumbersome process. We use a combination of our proprietary legal documents — prepared and reviewed by world-class law firms and backed by a guarantee — along with our proprietary tamper-proof ledger technology to minimize legal costs and future audit fees.”

To purchase stocks on the platform, users will need an Ethereum blockchain-compatible wallet and can then make purchases using a number of stablecoins, including USDC and Tether. That means the stocks and securities can be bought and sold using crypto tokens that retain a one-to-one parity with USD, which will make it similar to buying and selling on a traditional platform.

Dinari is launching its dShares platform outside of the U.S. and plans to begin onboarding users. The company also intends to launch a dividends and distributions offering platform coming soon.

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