Ethereum News Today: eToro to Tokenize 100 U.S. Stocks as ERC-20 Tokens on Ethereum for 24/5 Trading

eToro is preparing to tokenize 100 of the most popular U.S.-listed stocks and exchange-traded funds (ETFs) as ERC-20 tokens on the Ethereum blockchain, with a potential launch date set for July 29, 2025 [1]. This initiative aims to enable 24/5 trading, allowing investors to bypass traditional market hour constraints. Tokenized assets will also support off-platform transfers to self-custody wallets or decentralized finance (DeFi) protocols, enhancing control and liquidity for users [1]. The move aligns with the growing trend of real-world asset (RWA) tokenization, which seeks to bridge traditional financial systems with blockchain technology.

eToro’s CEO, Yoni Assia, emphasized that tokenization “democratizes finance” by increasing transparency and accessibility for a broader audience [1]. The platform’s approach allows users to move assets seamlessly between ecosystems, a shift that could redefine how investors interact with traditional equities. By converting stocks into blockchain-based tokens, eToro aims to reduce intermediation and friction in asset trading while expanding participation in global markets [1].

The tokenized stocks initiative reflects a broader industry shift toward integrating RWAs into decentralized ecosystems. While tokenized stocks currently account for approximately $418 million—about 2% of the $21.3 billion RWA market—analysts predict significant growth potential [1]. Recent developments, including Robinhood’s layer-2 blockchain on Arbitrum and Backed Finance’s tokenized stock offerings, underscore the sector’s momentum. Despite its nascent stage, the tokenized stock market is being described by industry leaders as a “bigger trillion-dollar market” in the long term [1].

The practical implications for users are substantial. Tokenized stocks on Ethereum offer extended trading hours, greater flexibility in asset management, and integration with DeFi platforms. Investors can transfer assets to personal wallets, bypassing centralized custody, or leverage DeFi protocols to generate yield or access new financial tools. This model could redefine liquidity and ownership paradigms, particularly for investors seeking non-traditional strategies [1].

eToro’s plans highlight Ethereum’s role as a foundational infrastructure for RWA tokenization. The platform’s user-friendly interface and focus on 24/5 accessibility position it as a key player in bridging traditional and decentralized finance. However, the success of the initiative will depend on regulatory clarity, user adoption, and the broader acceptance of tokenized assets as viable alternatives to traditional securities [1].

The integration of tokenized stocks into DeFi ecosystems could also accelerate innovation in cross-chain asset management and automated trading. By enabling 24/5 trading and off-platform transfers, eToro is addressing key limitations of conventional stock markets, such as liquidity constraints and operational inflexibility. This aligns with the industry’s push to create more inclusive financial systems, where blockchain technology reduces barriers to entry for retail and institutional investors alike [1].

Source: [1] eToro Plans Potential Launch of Tokenized US Stocks as ERC-20 Tokens on Ethereum Network (https://en.coinotag.com/etoro-plans-potential-launch-of-tokenized-us-stocks-as-erc-20-tokens-on-ethereum-network/)