- eToro will tokenize 100 popular US stocks as ERC20 tokens for 24/5 trading on Ethereum.
- Users can move tokenized stocks between eToro wallets and redeem them for real shares.
- eToro’s move aligns with MiCA and the Genius Act, boosting regulated asset tokenization.
eToro Group Ltd. has revealed plans to launch tokenized assets of US-listed equities, marking a bold stride toward transforming traditional equity trading. The move will enable users to access shares that will be issued as ERC20 tokens on the Ethereum network, allowing instant transfers between eToro wallets. The highlight of this move is that it offers 24/5 trading, implying that access is available even beyond market hours for five days in a week. The launch, which will initially roll out in Europe, marks a development step in improving equity accessibility as eToro continues to adopt tokenization.
More Flexibility to Retail Investors
According to a catalogue released by the team, the launch will include 100 of the most popular US stock securities and exchange-traded funds, such as Apple, Nvidia, Alphabet, Ford, JP Morgan, and Coinbase. The launch aims to give retail investors more flexibility to react to events in the markets or trade at their convenience. Yoni Assia, cofounder and CEO of eToro, stated that the move to 24/5 trading represents a natural progression in asset accessibility.
“Extended hours trading was the first step. 24/5 takes it further, but tokenization brings 24/7 accessibility,” Assia said during the “eToro Unlocked: Trade Without Boundaries” webinar. Although liquidity constraints and weekend market closures still limit 24/7 stock trading, the CEO believes that the extended trading hours across asset classes are becoming a norm.
Notably, the development follows that of Robinhood Markets Inc., which recently outlined its intentions to offer tokenized US securities in Europe. Nevertheless, Robinhood’s launch received criticism for pairing the rollout with a controversial OpenAI token giveaway, which OpenAI denounced as unauthorized and misleading.
Blockchain-Based Tokenization and Regulatory Backing
eToro will issue tokenized stocks as ERC20 tokens, enabling users to transfer their assets onto the Ethereum blockchain. The platform aims to enable redemptions between tokenized assets and the underlying stock positions, bridging traditional finance and decentralized finance (DeFi). Furthermore, this development builds on the company’s previous experience with tokenized assets like gold, silver, and fiat currencies, following its 2019 acquisition of Danish token startup Firmo.
Assia, who co-authored the Colored Coins whitepaper in 2012, emphasized that blockchain tokenization will drive a major generational shift in wealth management. He pointed to new regulatory frameworks like MiCA in Europe and the GENIUS Act in the US as enablers of legally backed digital assets.
“Tokenization removes boundaries, provides transparency and control, and opens finance to more people,” he stated. eToro believes that tokenizing real-world assets such as equities, and integrating them into the blockchain ecosystem, offers users a more direct and democratized trading experience.
Related: Goldman Sachs and BNY Launch Tokenized Funds For Big Investors
New Futures Products and Strong Financial Backing
In addition to equities, eToro stated it is expanding its derivatives offering to include spot-quoted futures. In partnership with CME Group, such contracts merge spot-based prices with longer expiry dates, which are offered in some European markets. This is in addition to crypto products already available on eToro, which boasts more than 50 digital assets and tokenized commodities.
The company has also bolstered its financial position with a $250 million revolving credit facility to support growth. Following its IPO in May, priced at $52 per share, eToro raised $310 million and now holds a market cap of $5.2 billion, with shares trading around $62.50.
Meanwhile, Canaccord Genuity reiterated a $78 price target on eToro stock, while Deutsche Bank and Cantor Fitzgerald initiated coverage with a Buy rating and targets of $70 and $84, respectively, citing eToro’s market expansion and unique social trading platform.
Established in 2007 by Yoni and Ronen Assia in Israel, eToro has over 40 million registered users across 75 countries now. The company has also maintained a leadership in digital innovation that connects the crypto and traditional markets, acting as a platform for both in the token economy.
