Global trading platform eToro has not only announced the launch of tokenized trading but also that this will be for the U.S. equities, ETFs, and futures. This is a major move in eToro’s strategy to integrate blockchain with traditional finance. The initiative has received regulatory support from both the U.S. and Europe. The GENIUS Act was recently passed in the U.S. and the implementation of MiCA regulations is going on in Europe.
eToro’s co-founder and CEO Yoni Assia said that new regulation creates good conditions for the tokenization of real-world assets. “We have been very optimistic about the tokenized future,” said Assia. “The blockchain technology is going to be the game changer in the transfer of wealth as it takes traditional assets to the decentralized networks.”
The tokenized assets will be represented as ERC-20 tokens on the Ethereum blockchain, giving users an opportunity to trade U.S. stocks such as Apple, Tesla, and Nvidia even at night. Additionally, through a strategic partnership with CME Group, eToro will also provide tokenized versions of futures contracts.
“The opening of global markets has always been our mission. Tokenization is an enabler for 24/7 access, an extension of trading hours after all, “Assia said.
Besides launching tokenized stock and futures, eToro made its first step in asset tokenization by issuing tokenized gold and silver products back in 2019, which was going to be the mapping of broader asset tokenization strategies.
Despite the innovation, eToro cautioned users about the potential challenges of 24/7 tokenized trading, including low liquidity and increased volatility during non-market hours.
The launch adds eToro to a growing list of platforms exploring tokenized equities. Firms like Kraken and Robinhood have also expressed interest in bringing traditional financial instruments on-chain. However, the U.S. Securities and Exchange Commission (SEC) has yet to finalize how it will regulate these assets.
Recently, Citadel Securities urged the SEC to regulate tokenized equities under traditional securities laws without exemptions. SEC Chair Paul Atkins acknowledged the shift, saying, “If it can be tokenized, it will be tokenized.”
As eToro leads the charge, the future of 24/7 tokenized equity trading appears closer than ever.
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