Ethereum News Today: eToro Launches Tokenized US Stocks on Ethereum for 24/5 Trading and DeFi Access

eToro is expanding its offerings into real-world asset (RWA) tokenization by launching tokenized versions of the 100 most popular U.S.-listed stocks and ETFs as ERC-20 tokens on the Ethereum blockchain. This move enables 24/5 trading of these assets, extending well beyond traditional market hours. Users will eventually be able to transfer these tokenized assets into their own crypto wallets and interact with them in decentralized finance (DeFi) protocols [1].

The initiative aims to bridge traditional finance and decentralized finance by giving users full control over their tokenized assets. According to a company spokesperson, this is a key objective. For example, a user could buy tokenized Tesla shares on eToro, transfer them to an Ethereum wallet, and use them in DeFi applications such as staking or lending. The assets can later be returned to eToro if needed [1].

eToro is not new to tokenization. In 2019, it introduced blockchain-based tokens for gold and silver. However, tokenizing publicly traded U.S. stocks represents a major step toward mainstream adoption of tokenized assets [1]. The firm's CEO, Yoni Assia, believes tokenization can "democratize finance" by reducing friction and removing intermediaries that currently control access to traditional assets. He emphasized the potential for greater transparency, control, and accessibility for users [1].

Despite the growing interest, tokenized stocks remain a small part of the overall RWA market. According to RWA.xyz, tokenized equities account for just $418 million in total value, compared to a $21.3 billion RWA market [1]. However, momentum is increasing. In June, Robinhood launched a layer-2 blockchain on Arbitrum for tokenized stocks, offering zero-commission trading in Europe. Around the same time, Switzerland-based Backed Finance listed over 60 tokenized equities on platforms like Kraken and ByBit [1].

Currently, these tokenized assets are not available in the United States or other restricted regions due to regulatory constraints. However, the broader trend suggests growing global interest in tokenized finance. As tokenized assets become easier to buy, transfer, and use in DeFi protocols, the market could evolve from niche to mainstream. Whether this future favors centralized platforms like eToro or fully on-chain systems remains uncertain, but the infrastructure is being laid [1].

Source: [1] eToro to Launch Tokenized US Stocks on Ethereum for 24/5 Trading (https://coinmarketcap.com/community/articles/688bb16e15d34b24a3e59d5f/)