eToro has announced the launch of tokenized versions of U.S. stocks and futures, allowing investors to engage with digital assets based on Ethereum.
Update from eToro
eToro has announced the expansion of its services by offering tokenized versions of U.S. stocks and futures. These tokenized assets will operate as ERC-20 tokens on the Ethereum blockchain.
Benefits of Tokenization
CEO Yoni Assia noted that recent regulatory developments such as the European MiCA framework and the U.S. GENIUS Act provide legal pathways for the tokenization of real-world assets. The advantage of tokenization lies in the ability to participate in capital transfers through digital platforms.
Important Trading Aspects
eToro clients will be able to trade stocks listed on NYSE and Nasdaq as well as tokenized futures through a partnership with CME Group. However, the company warns about potential risks such as low liquidity and high volatility during non-traditional trading hours. Tokenized stocks will function similarly to conventional equities but with extended trading access.
With the launch of tokenized stocks and futures, eToro seeks to provide investors with a new level of market access, but it is important to consider the associated risks and nuances.
