(Bloomberg) -- The Nasdaq stock exchange will be among the companies delivering price feeds to a service offering tokenized stocks.
Nasdaq's feed, along with those of Finnhub, will power services on DeFiChain, a native decentralized finance blockchain for the Bitcoin network devoted to monetary applications and services, according to a statement from the blockchain's community group.
DeFiChain will offer tokenized stocks corresponding to the underlying price of listed companies such as Apple Inc., Tesla Inc., Amazon.com Inc. and GameStop Corp., the statement said. The tokenized stocks will be collateralized by cryptocurrencies, which means traders won't have to go through an intermediary such as a broker, the statement said.
Tokenized stocks can be purchased in fractions in the form of decentralized loans. This system will power the stock trading mechanics on DeFiChain in a trustless manner and will use DeFiChain's native digital currency -- DFI -- as well as Bitcoin and USD Coin, among other cryptocurrencies, according to the statement.
“This will open the door to many people who are frustrated by traditional markets,” said Julian Hosp, a co-founder of DeFiChain, in an interview Thursday. “As a community, we're excited about that.”
Learn more: Fake Tesla, Apple Stocks Have Started Trading on Blockchains
DeFi tokenized stock trading doesn't offer any ownership of the underlying asset. Instead, it is a tokenized representation of a stock that, in part, mirrors the underlying asset's price. It can be traded 24 hours a day, seven days a week.
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