eToro is taking a major leap toward blockchain integration by announcing plans to tokenize U.S.-listed stocks on the Ethereum network, enabling real-time, 24/7 trading via decentralized finance (DeFi) protocols.
Stock Tokenization Begins on Ethereum
In a press release issued July 29, eToro confirmed it will launch ERC-20 tokens representing U.S. equities, which can be traded on-chain and redeemed back into the original stock positions on the platform. This initiative aims to bring traditional equities into the DeFi ecosystem, making them available beyond standard market hours and compatible with smart contract infrastructure.
“Our goal is to tokenize every asset on eToro, starting with stocks,” said eToro CEO Yoni Assia.
With stock tokenization, investors can access fractional, globally tradable shares without needing to rely on conventional market infrastructure or hours of operation.
Global Shift Toward Asset Tokenization
eToro’s announcement follows similar moves by Robinhood, which launched stock token trading for European users in June, and major crypto exchanges like Kraken, Gemini, and Bybit, who have also introduced tokenized equity services.
The surge in interest comes amid a broader trend of real-world asset (RWA) tokenization, driven by regulatory clarity. eToro cited Europe’s MiCA regulations and the U.S. Genius Act as key enablers of this digital shift, providing a compliant path for regulated, legally-backed digital securities.
Tokenized assets may become the standard for 24/7 trading, offering improved liquidity, transparency, and accessibility for global investors.
DeFi Meets Traditional Finance
The decision to launch tokenized stocks on Ethereum aligns eToro with the wider DeFi movement. These tokens can interact with DeFi protocols for lending, yield farming, and automated portfolio rebalancing—blurring the lines between traditional finance and Web3.
With over 30 million users worldwide, eToro’s entry into tokenized equities could dramatically scale adoption and validate blockchain rails as a core infrastructure for global capital markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.