eToro to Launch Tokenized U.S. Equities on Ethereum Blockchain in August

Investment platform eToro plans to launch tokenized versions of U.S. stocks and ETFs on the Ethereum blockchain in August. The move is aimed at allowing investors around the world to trade popular U.S. shares at any time, including weekends and holidays.

eToro said the first phase of the rollout will include 100 well-known U.S. stocks and ETFs, such as Apple, Tesla, Microsoft, and Amazon. Each token will represent a real, redeemable share, held in custody by eToro. The tokens will follow the ERC-20 standard used on Ethereum.

Tokenized Trading Without Borders

“This is not just about turning stocks into tokens, it’s about giving people more freedom to invest, wherever they are.”

Yoni Assia, Chief Executive Officer at eToro

24/7 Trading and Blockchain Benefits

Unlike traditional stock markets, which operate only during specific hours on weekdays, the tokenized stocks will be available 24/7. That means investors will be able to trade even when markets like the NYSE or NASDAQ are closed.

The use of Ethereum allows for continuous trading and could help investors respond more quickly to breaking news, earnings reports, or global events.

Connecting to DeFi

One key feature is that investors can move these tokenized stocks to Ethereum wallets they control. Once there, they can use them in decentralized finance (DeFi) systems.

For example, investors may be able to:

  • Use tokenized shares as collateral to borrow funds
  • Earn rewards by supplying them to liquidity pools
  • Trade directly with others, without going through a broker

This flexibility combines the stability of traditional finance with the innovation of blockchain.

Regulation and Partnerships

The new product will launch first in Europe, under the region’s MiCA rules for crypto assets. eToro also said it is working with the CME Group to provide live pricing data and risk-management tools, including futures hedging.

Expansion into other markets may follow, depending on how digital asset regulations evolve, especially in the U.S. and Asia.

Industry Trends and Challenges

eToro is not alone in exploring this space. Companies like Coinbase, Kraken, and Robinhood are also looking into tokenized real-world assets (RWAs). Market research firm Bernstein estimates the RWA market could grow to $10 trillion by 2030.

Still, there are obstacles. These include:

  • Lower trading volume during off-hours
  • Regulatory differences across countries
  • The need to educate investors about wallet security and smart contracts

What Comes Next

The launch in August will be closely watched. If successful, it could be a step toward making tokenized assets part of everyday investing.

eToro’s move shows how traditional finance and blockchain technology are starting to come together. It may also mark the beginning of a new way to trade and hold assets that goes beyond borders and time zones.

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