tl;dr
Online brokerage eToro will launch tokenized stocks on the Ethereum blockchain, allowing clients to trade stocks as ERC-20 tokens 24/7. Initially, 100 popular U.S.-listed stocks and ETFs will be available for 24/5 trading. This initiative aligns with growing blockchain adoption in finance and follow...
Online brokerage eToro is set to launch tokenized stocks on the Ethereum blockchain, enabling clients to trade stocks as ECR-20 tokens 24 hours a day, seven days a week. Initially, 24/5 trading will be available for 100 of the most popular U.S.-listed stocks and ETFs. This move taps into the surge of retail investors and represents a significant shift in how wealth is transferred between generations, according to eToro CEO Yoni Assia.
The introduction of tokenized stocks aligns with a broader trend in the financial industry toward adopting blockchain technology and tokenization. eToro has a history in this space, having introduced tokenized gold and silver following its acquisition of Danish token startup Firmo in 2019. This development follows similar moves by major players like BlackRock, which recently launched its USD Institutional Digital Liquidity Fund as a tokenized fund operating on Ethereum.
Tokenizing real-world assets has gained momentum, with about $12.19 billion locked on decentralized platforms, reflecting increasing investor interest in digitized financial instruments within the Web3 ecosystem. Market analysts forecast continued growth, with VanEck predicting tokenized real-world assets will exceed $50 billion in market capitalization by the end of 2025. Ethereum remains the leading platform for these tokenization efforts.
eToro’s engagement with cryptocurrencies dates back to early Bitcoin acquisitions when BTC was valued at $5, and the platform began supporting crypto trading in 2013. Despite these innovations, eToro’s stock performance has faced challenges, dropping more than 4% on the day of the announcement and about 10% year-to-date. Ethereum’s price hovered around $3,775, showing slight declines over the previous 24 hours, highlighting the market's volatility as tokenization efforts expand.