Trust Wallet, the self-custodial cryptocurrency platform, has announced the launch of tokenized stocks and Exchange-Traded Funds (ETFs) in collaboration with Ondo Finance and 1inch.
Partnership and Access to Traditional Assets
Trust Wallet has partnered with Ondo Finance and 1inch to provide global access to tokenized stocks and ETFs through Ethereum smart contracts. Trust Wallet CEO Eowyn Chen emphasized that integrating these assets makes the global financial system more accessible through blockchain technology. 'Integrating real-world assets into self-custodial wallets is an important step in making global finance more open and efficient,' she added.
Trading Restrictions and Technical Aspects
The new tokenized asset feature comes with significant geographical restrictions. Real-world asset tokens are not available for users in the US, UK, and the European Economic Area. Trading occurs only during US market hours from Monday to Friday between 1:30 PM and 8:00 PM UTC. Users attempting transactions from restricted regions will face automatic swap failures. The company plans to incorporate additional asset providers and liquidity sources in the future.
Key Terms and Market Context
Real-world assets (RWAs) refer to traditional financial instruments such as stocks and bonds that have been converted into digital tokens. Self-custody wallets enable users to control their private keys, providing enhanced security but requiring key storage and backup. Decentralized finance (DeFi) platforms utilize blockchain technology to recreate traditional financial services without centralized intermediaries.
Trust Wallet's integration of tokenized stocks and ETFs represents a significant step in facilitating access to traditional financial assets via self-custodial platforms. The partnership with Ondo Finance and 1inch highlights the growing intersection between decentralized finance and traditional securities markets, although geographical restrictions and custodial dependencies remain limiting factors.
