- eToro introduces tokenized U.S. stocks, ETFs, and futures as ERC-20 tokens on Ethereum, partnering with CME Group.
- eToro cautions about potential low liquidity and high volatility during extended trading hours, echoing its 2019 metals rollout.
eToro will offer tokenized versions of U.S. stocks and futures. The trading platform announced this expansion on Tuesday. Tokenized assets will represent traditional equities and exchange-traded funds. These digital tokens will operate as ERC-20 assets on Ethereum’s blockchain.
CEO Yoni Assia cited recent regulatory developments as enabling factors. Europe’s MiCA framework and the U.S. GENIUS Act provide legal pathways. These regulations establish standards for tokenized real-world assets. Assia stated blockchain enables major wealth transfers through tokenization.
Yoni Assia said: “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. Tokenization removes boundaries, providing transparency and control. It has the potential to democratize finance, making assets more accessible to more people.
The service covers equities listed on NYSE and Nasdaq. eToro partnered with CME Group for tokenized futures. Retail investors gain 24-hour market access through this model. Traditional stock exchanges maintain limited operating hours.
“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. Hurdles remain, namely vested interests, however, we are witnessing key milestones on that journey. New regulations, such as MiCA in Europe and the passing of the Genius Act in the US, makes the tokenization of real world assets a new opportunity to create digital assets that are legally backed and regulated. The benefits of tokenization, in particular 24/7 transferability, have been clearly demonstrated by stable coins and these opportunities are now expanding to more asset classes.” – Co-founder and CEO, Yoni Assia said:
eToro previously introduced tokenized gold and silver in 2019. The new offering expands its digital asset range. Tokenization allows continuous trading but carries specific risks. eToro warned about potential low liquidity overnight. High volatility may occur during non-traditional hours.
“We began our tokenization journey in 2019 and we’re excited to now be able to significantly progress that initiative. 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. Users will then be able to redeem tokenized stocks for the underlying position on eToro and vice versa.”
Tokenized shares function similarly to conventional equities. Ownership rights and economic benefits remain equivalent. The blockchain layer primarily enables extended trading access. Technical implementation uses Ethereum’s established token standard.
Regulatory compliance distinguishes this initiative. Asset-backed tokens require legal frameworks like MiCA. eToro positions this as natural progression in market accessibility. The platform continues bridging traditional and digital finance.
Investors should note operational differences from standard trading. Settlement processes and custody arrangements involve blockchain mechanisms. eToro will provide detailed user guides before launch.
