eToro Debuts Tokenized Stocks on Ethereum Blockchain !
eToro introduces tokenization of stocks on Ethereum, paving the way for more accessible decentralized finance. What are the implications and potential ? An analysis of this ongoing revolution.
eToro introduces tokenization of stocks on Ethereum, paving the way for more accessible decentralized finance. What are the implications and potential ? An analysis of this ongoing revolution.
eToro, the renowned online broker, recently announced plans to launch tokenized shares of US-listed companies on the Ethereum blockchain. This initiative is part of a broader strategy to offer users diversified access to financial assets through blockchain technology.
In addition to 24/7 trading of 100 US stocks and ETFs, eToro also plans to introduce futures contracts indexed to these tokenized assets. The goal is to enable investors to benefit from more accessible position sizes. The company is collaborating with the CME Group to facilitate real-time pricing and longer-term expiration dates.
Yoni Assia, co-founder and CEO of eToro, emphasizes the transformative potential of asset tokenization for the decentralized finance (DeFi) ecosystem. The company aims to tokenize all assets offered on its platform, beginning with stocks.
This would allow users to move these tokenized assets on the blockchain and integrate them more broadly into the DeFi ecosystem. Assia highlights the advantages of tokenization in terms of democratizing financial markets, 24/7 accessibility, increased transparency, and greater user control.
Although regulatory challenges persist, Assia emphasizes the importance of recent developments such as the EU’s MiCA framework and the GENIUS Act in the United States, which will facilitate the adoption of these innovations.
eToro is not the only platform interested in stock tokenization. Kraken, Coinbase, and Robinhood have also announced similar ambitions in this area. For example, Kraken recently launched tokenized stocks with 24/7 trading via its xStocks platform.
This trend illustrates a broader movement toward a more open and inclusive digital economy, where traditional assets are progressively integrated into blockchain technology. eToro’s vision of tokenizing every asset on its platform highlights the transformational potential of decentralized finance.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.