Etoro set to initiate stock trading through tokenized assets on the Ethereum platform
In a significant move towards a "tokenized future," eToro, the global multi-asset investment platform, has announced plans to issue ERC-20 tokenized stocks on the Ethereum blockchain. This initiative will enable extended trading hours, user self-custody, and interaction with decentralized finance (DeFi), all supported by improving regulatory frameworks.
The total value of tokenized real-world assets on Ethereum currently stands at around $11.1 billion, accounting for 55% of the total $21.4 billion. This surge in RWA tokenization value, which has risen 35% since the beginning of the year, is a testament to the growing interest in blockchain technology.
eToro's CEO, Yoni Assia, has emphasized the company's long-term belief in tokenization. Assia believes that blockchain technology will facilitate the greatest ever transfer of wealth. In line with this vision, eToro plans to tokenize every asset on its platform, starting with U.S. stocks.
The company's approach includes using the Ethereum blockchain to represent U.S. stocks as tokenized equities that remain legally backed by the underlying shares held by eToro. Users will eventually be able to withdraw these tokenized stocks to personal wallets and utilize them in DeFi applications, such as staking or lending, which bridges traditional finance and DeFi ecosystems.
New regulations such as MiCA in Europe and the passing of the GENIUS Act in the U.S. are seen as opportunities for tokenization of real-world assets. These regulatory advances create more legal clarity and support for digital assets backed by real-world securities, providing a solid foundation for eToro's tokenization initiatives.
The US-listed equities will be launched as ERC-20 tokens on the Ethereum blockchain, offering greater flexibility than conventional stock exchanges. This move follows rival platform Robinhood, which launched tokenized versions of over 200 US stocks and ETFs for European customers in late June.
eToro also plans to partner with institutional entities such as the CME Group to provide tokenized futures trading alongside tokenized stocks, thereby broadening tradable asset classes on their platform. The company aims to tokenize 100 popular U.S.-listed stocks and exchange-traded funds, making these tokenized stocks available for trading 24/5.
As the tokenization of real-world assets continues to gain momentum, Ethereum is likely to be the ultimate beneficiary. Industry experts and executives are increasingly eyeing Ether treasuries, indicating a growing recognition of Ethereum's potential as a platform for tokenized assets.
In summary, eToro's shift to a blockchain-based marketplace for U.S. equities represents a significant step towards integrating traditional finance with DeFi. By issuing ERC-20 tokenized stocks on Ethereum, eToro is enabling extended trading hours, user self-custody, and interaction with DeFi, all supported by improving regulatory frameworks. This move is expected to facilitate the greatest ever transfer of wealth by moving traditional assets onto the blockchain while integrating with the DeFi ecosystem.
- The new initiative by eToro to issue ERC-20 tokenized stocks on Ethereum blockchain is expected to facilitate the interaction with decentralized finance (DeFi).
- eToro's approach to tokenizing U.S. stocks includes using the Ethereum blockchain to represent tokenized equities, which will be withdrawable to personal wallets.
- The surge in the value of tokenized real-world assets on Ethereum, which accounts for 55% of the total, underscores the growing interest in blockchain technology and crypto.
- With the growing integration of traditional finance and DeFi ecosystems, eToro aims to tokenize 100 popular U.S.-listed stocks and exchange-traded funds, making them available for trading 24/5, thereby broadening tradable asset classes on their platform.
