eToro has announced the launch of tokenized stocks based on Ethereum. This decision will allow users to trade real-world stocks via cryptocurrency platforms.
Launch of Tokenized Stocks
eToro plans to make 100 of the most popular stocks listed on U.S. exchanges available as ERC-20 tokens. These will be tradable 24/5, providing users with direct exposure to real stocks through crypto rails.
Benefits of Tokenization
A key feature of eToro's new offering will be the ability for off-platform transfers of tokenized stocks. Users will be able to transfer these tokens to eToro's wallet and then move them into self-custody or DeFi protocols, with the option to return them to the platform if needed. eToro's CEO, Yoni Assia, noted that tokenization removes barriers and brings more transparency to ownership.
Future of Tokenized Assets
Tokenization of real-world assets (RWA) is gaining traction in the financial sector. Currently, tokenized equities represent only a small fraction of this market, but experts are predicting significant growth. eToro may become a strategic player in creating more accessible and transparent financial instruments for retail investors.
The launch of tokenized stocks by eToro represents an important step in the development of accessible financial solutions, opening new investment opportunities through blockchain.
