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What Dinari's Avalanche L1 Is, and What the Sources Say It Does

Dinari's Avalanche-based Layer 1, announced Aug. 14, 2025, is documented as a settlement layer for dShares. Its chain is producing blocks; no source shows which order step runs on it.

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What Dinari's Avalanche L1 Is, and What the Sources Say It Does - Tutorial and guide

Avalanche posted "Avalanche Originals, Episode 1" on Oct. 28, 2026, a roughly two-minute video in which Dinari CEO Gabriel Otte explains why Dinari chose Avalanche (Avalanche Originals). The network he discusses is not new: Avalanche's own post dates the launch of the Dinari Financial Network (DFN) to Aug. 14, 2025 (Avalanche). This guide explains how Dinari's pieces fit together, using Dinari, Avalanche and AvaCloud pages, and says where those pages stop.

What Otte says in the video

We read the episode's YouTube auto-captions, which are machine-generated and render the company name as "Denali"; we paraphrase except where the words are clear. Otte says that when Dinari considered who to build the network with, "there was really only one choice, which was Avalanche" (YouTube). The reasons he gives are the power, speed and efficiency of an L1 plus customizability that lets Dinari make the product compliant with regulation. He describes the DFN as a special purpose chain built with Avalanche, and says Dinari estimated building its own chain would take over a year while Avalanche cut that to weeks. These are Otte's own claims; the episode names no figures we could check.

What a dShare is

Dinari's docs define a dShare as "a token 1:1 backed by a security, commonly a U.S. equity" (Dinari docs). Dinari's site says the underlying shares are held by a third-party custodial broker, named there as Alpaca Securities LLC, separate from Dinari's operating accounts (dinari.com). The same page says holders keep the economic rights of a stockholder, with cash dividends paid in stablecoins and splits mirrored automatically. Avalanche's August 2025 post adds voting rights "where permissible."

How an order mints or burns a dShare

Dinari's docs describe one sequence for every buy or sell:

  1. Each order passes through validation, a second check of eligibility and balance, execution and settlement (Dinari docs: Placing Orders).
  2. Dinari routes the order to be filled against the underlying security; limit orders can expire unfilled.
  3. Minting or burning happens only after the brokerage fill is confirmed, which the docs say keeps backing at 1:1 (What are dShares). A buy mints dShares to the wallet; a sell burns them and releases stablecoin proceeds; a failed order mints and burns nothing (Dinari docs: Placing Orders).

Where the Avalanche L1 fits

Avalanche's launch post describes the DFN as a Layer 1 for "omni-chain liquidity and settlement" for Dinari's partner network, built on Avalanche and powered by AvaCloud (Avalanche). The AvaCloud case study calls it a coordination layer for issuance and settlement of dShares, designed so users on any supported chain trade against the same inventory instead of separate pools per chain (AvaCloud). Dinari's June 11, 2026 post calls it an Avalanche-powered Layer 1 launched in 2025 and "designed to support the issuance, settlement, and movement of tokenized equities" (Dinari). Dinari's July 6, 2026 post, "The Dinari Financial Network," describes a common operating framework for the lifecycle of tokenized securities and lists current and planned capabilities without separating them; it does not mention Avalanche, a Layer 1 or validators (Dinari).

LayerZero's Nov. 20, 2025 post says the DFN supplies compliance, settlement and throughput standards while its Omnichain Fungible Token standard lets dShares exist across chains under one supply; the initial rollout was four blockchains and 200 tokens, unnamed (LayerZero).

The order-flow docs above do not name the DFN. No source we read shows the L1 settling a specific dShare order, so which on-chain step runs on the L1 and which on a destination chain is not documented in what we found.

The validators

Avalanche's August 2025 post names Gemini, BitGo, VanEck and WisdomTree as validators and says "several" participants will also provide custody and settlement support, without saying which. The AvaCloud case study lists the initial validators as Gemini, BitGo and VanEck, says Gemini and BitGo also provide custody, and notes that VanEck Ventures is an investor in Dinari. WisdomTree appears in the Avalanche post and not in the AvaCloud list.

Is the chain running?

Dinari's July 6, 2026 and June 11, 2026 posts are its own dated statements after the launch; neither gives usage figures. Separately, the chain is checkable. On Nov. 1, 2026 at 00:20Z we queried the Dinari Financial Network's public RPC endpoint, https://subnets.avax.network/dinari/mainnet/rpc, the address Avalanche's builder explorer lists for the chain, which it shows with chain ID 202110. The endpoint returned that chain ID and a latest block of 5,780,215, timestamped 00:20:53Z. An earlier read at 18:21Z on Oct. 31 showed block 5,775,224, and the Avalanche P-Chain API listed 10 current validators for subnet ID 2Ee4oBUute1PV5XaeS4b256eLH98r4NE8YgzX5nSX4cUxvtgre, the subnet Avalanche's Glacier API gives for chain 202110. That shows the chain is producing blocks. It does not show how many dShare orders settle on it; the block we sampled held one transaction.

Chains dShares are on

Dinari's docs list Ethereum, Arbitrum One, Avalanche C-Chain, Base, HyperEVM, HyperCore and Plume, mark Kinto and Blast as deprecated, and say "many more" are coming; the page carries an updatedAt of Oct. 14, 2026 and does not list Solana (Dinari docs: Blockchain). Dinari's Aug. 4, 2026 post says it "currently supports Ethereum, Avalanche, Arbitrum, Base, and will expand to Sei and Solana" (Dinari). Its Sept. 16, 2026 post lists the same four as current and announces Arc. The AvaCloud case study, which is undated, lists Solana as served in one section and "imminent" in another; Dinari's dated pages do not list it as live.

Who can hold dShares

Dinari's site says wallets must clear KYC/KYB verification, lists geographic restrictions, accreditation checks where required and AML monitoring, and says dShares "align with localized regulatory frameworks in 91 jurisdictions" (dinari.com). For U.S. customers, the docs bar partners from pooling orders and restrict some assets to accredited investors (Dinari docs: US Customers). The restrictions page lists unsupported countries and says Dinari is "in the process of securing proper licensing" in Canada (Restrictions).

24/7 trading

Dinari's May 20, 2026 post says 24/7 trading is live for "a selection of our most actively traded dShares," with weekend and holiday coverage from onchain liquidity powered by Flow Traders and more tickers planned (Dinari). The dShares page tags AAPL, AMZN, QQQ and SPY with "24/7 trading." Crypto Briefing wrote on Oct. 28, 2026 that 24/7 trading and same-day settlement "remain dependent on regulatory requirements" (Crypto Briefing). That sentence appears in its coverage of the U.S. launch; Dinari's Aug. 4 post lists continuous 24/7 trading and T+0 settlement among capabilities it can support over time, subject to regulatory requirements.

How the catalogue size has been reported

Avalanche's August 2025 post cited more than 150 U.S. stocks and access in over 85 countries. Dinari's June 11, 2026 post said more than 350 dShares, including equities, ETFs and REITs, could be accessed on Avalanche by investors outside of the U.S. on The dShares Trading app. The next day, Crypto Briefing repeated "more than 150" and said no new or governance tokens launched with the Avalanche deployment (Crypto Briefing). Dinari's Aug. 4, 2026 post announced 724 tokenized U.S. stocks for eligible U.S. investors and businesses. Crypto Briefing's Oct. 28 piece places that opening "in August" without a year and credits the USDC-purchases detail to The Defiant. Dinari's homepage advertises "700+ stocks" (dinari.com).

What the sources do not settle

  • What the L1 does per order. No cited source shows the L1 settling a dShare order or splits its role from the destination chains'.
  • Volume. Block production is verifiable; dShare activity on the DFN is not stated in anything we read.
  • Which validators. Whether WisdomTree validates, and which validators custody which assets, differs between the Avalanche post and the case study.
  • Two kinds of custody. Sources discuss validator custody and a brokerage custodian for the underlying shares; none reconciles the two.
  • Otte's claims. The over-a-year-to-weeks comparison is his estimate, not documented elsewhere.

Sources

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