Dinari Taps Chainlink to Tokenize S&P DJI's Upcoming Crypto Market Index
Dinari, a tokenized equity specialist, is working with Chainlink to bring the S&P Digital Markets 50 Index onchain. The index tracks 35 blockchain-related companies and 15 top cryptocurrencies. Dinari will offer 'dShares,' a token representing the index, allowing investors exposure to both traditional and crypto markets through a single asset. Each dShare is backed by the underlying stock and custodian-held to ensure rights like dividends. Chainlink's decentralized oracle network provides transparent and reliable real-time pricing, enabling the index to reflect updated market performance on blockchain. This initiative aligns with the broader trend of integrating traditional financial instruments into blockchain systems.
Oracles
Introduction to Collaboration: Dinari and Chainlink
Tokenized equity specialist Dinari is tapping oracle network Chainlink (LINK$14.92) for pricing data to bring the S&P DJI's upcoming crypto-focused index onchain. The firms told CoinDesk about this collaboration on Wednesday.
S&P Digital Markets 50 Index Overview
The S&P Digital Markets 50 Index will track 35 public companies involved in blockchain technology and 15 top cryptocurrencies. Dinari aims to create a token of this index using its "dShares" offering, providing investors with the opportunity to gain exposure to both traditional financial (TradFi) and crypto markets through a single digital asset.
Structure and Backing of dShares
Each dShare is backed 1:1 with the underlying stock and is held by a regulated custodian. This ensures that investors retain the rights such as dividends and redemptions. While S&P DJI is not directly backing the token, the index provider confirmed that Chainlink's integration ensures data transparency and reliability.
Role of Chainlink’s Decentralized Oracle Network
Chainlink will utilize its decentralized oracle network to ensure the index dynamically reflects up-to-date market performance directly on blockchain protocols. Oracles are services that provide blockchains with real-world information, essential for powering blockchain programs like smart contracts.
Statement from Chainlink Labs
According to Fernando Vazquez, president of capital markets at Chainlink Labs, "By powering the S&P Digital Markets 50 Index, Chainlink is enabling one of the first indexes to operate onchain with verifiable, real-time index data that spans both traditional and digital assets."
Broader Trend of Real-World Assets on Blockchain
This initiative aligns with a broader trend of transitioning traditional financial instruments like bonds, funds, and equities—known as real-world assets (RWA)—onto blockchain platforms. For instance, RWA platform Centrifuge announced the first licensed S&P 500 index fund onchain, SPXA, in September. It is traded on Coinbase’s Base network and jointly managed by Janus Henderson and Centrifuge’s Anemoy.