eToro has announced the launch of tokenized stocks on Ethereum, enabling investors to trade popular U.S. stocks around the clock.
Tokenized Stocks on Ethereum
eToro is starting to convert 100 of the most popular U.S.-listed stocks and ETFs into ERC-20 tokens. These tokens will be fully backed by the underlying shares held by eToro, allowing investors acquiring these tokens to essentially own real shares.
Round-the-Clock Trading and DeFi Integration
The tokenized stocks will provide the opportunity for 24/7 trading, which distinguishes them from traditional markets with fixed trading hours. This feature aims to enhance flexibility for traders to respond to market events at any time. Additionally, tokenized assets can integrate with decentralized finance (DeFi) applications for lending, staking, and other financial tools on the Ethereum blockchain.
Market for Tokenized Assets and the Future
The rollout is expected to begin in August 2025, starting with European markets before expanding globally. This move could significantly increase liquidity and broaden participation in both crypto and stock markets. The Ethereum blockchain, anticipating increased transaction volumes, may strengthen its position as a hub for tokenized real-world assets.
The launch of eToro's tokenized stocks emphasizes the trend of integrating traditional financial instruments with blockchain, as the company aims to create more accessible markets for investors.
