eToro to Tokenize US Stocks on Ethereum
eToro Brings Tokenized US Equities to Ethereum
Trading platform eToro is set to launch tokenized U.S. equities on Ethereum, expanding its trading suite and advancing its tokenization strategy, the company announced. This initiative aims to bridge traditional finance with the decentralized finance (DeFi) ecosystem.
The launch will feature 100 top U.S.-listed stocks and ETFs, tokenized as ERC-20 assets on Ethereum and backed 1:1 by traditional shares held by eToro. Users will be able to redeem tokenized stocks for underlying positions on eToro and vice versa, offering seamless integration between traditional and decentralized assets.
Additionally, eToro has introduced spot-quoted futures in collaboration with CME Group, currently available in select European markets, further diversifying its offerings.
“We’ve been long-term believers in a tokenized future. Blockchain technology will facilitate the greatest ever transfer of wealth, as traditional assets are tokenized and moved onto the blockchain,” said Yoni Assia, eToro co-founder and CEO, during a global webinar titled ‘eToro Unlocked: Trade Without Boundaries.’
According to Assia, while traditional institutions have shown resistance, new regulations such as Europe’s MiCA and the U.S. GENIUS Act are establishing the legal framework for regulated, tokenized assets. He noted that stablecoins have already demonstrated the power of 24/7, borderless trading, and that this model is now expanding across asset classes.
The tokenization initiative builds on eToro’s previous ventures, including the launch of tokenized gold (GOLDX) and silver (SLVX) in 2019, following its acquisition of Danish token startup Firmo.
“Our mission has always been to open the global markets. Extended hours trading was the first step, 24/5 takes it a step further; however, tokenization brings 24/7 accessibility,” Assia stated. “Our goal is to tokenize every asset on eToro – starting with stocks – enabling our users to move tokenized assets onto the blockchain and from there, integrate them into the broader DEFI ecosystem.”
eToro’s move follows increasing momentum around asset tokenization. Last month, Kraken launched tokenized stock trading for major companies like Apple and Nvidia. Kraken co-CEO Arjun Sethi predicted that tokenized equities could soon outpace the stablecoin market, citing their greater transparency, speed, and global accessibility.
Coinbase is also seeking SEC approval to offer tokenized stocks in the U.S., aiming to unlock 24/7 trading and faster settlement times, placing it in direct competition with traditional brokerages.
Key Takeaways
- eToro will launch tokenized US equities as ERC20 tokens on the Ethereum blockchain.
- The initiative aims to enable 24/7 trading and integrate traditional stocks into the DeFi ecosystem.