Ethereum News Today: eToro to tokenize 100 US stocks as Ethereum ERC-20 tokens for 24 5 trading launching August 2025

eToro Group Ltd. has announced plans to tokenize the 100 most popular U.S.-listed stocks and exchange-traded funds (ETFs) as ERC-20 tokens on the Ethereum blockchain, with a scheduled launch in August 2025. The initiative will enable 24/5 trading of tokenized equities, allowing investors to buy, sell, or transfer shares outside traditional market hours. These tokenized assets will be issued as ERC-20 tokens, each backed 1:1 by physical shares held by eToro, ensuring direct alignment with the value of the underlying securities [3][5][8].

The move aims to address limitations of conventional stock markets, such as geographic and time restrictions, by leveraging Ethereum’s global accessibility. Tokenization will facilitate seamless transfers of assets across blockchain networks, offering users greater flexibility to interact with their holdings. For instance, investors can potentially use tokenized stocks as collateral for decentralized finance (DeFi) applications or transfer them to other compatible platforms [5][8]. eToro’s CEO, Yoni Assia, emphasized the initiative’s role in democratizing finance by removing barriers for retail investors [4].

The platform’s approach mirrors broader industry trends of tokenizing real-world assets (RWAs) to enhance liquidity and interoperability. By selecting the 100 most popular U.S. stocks—primarily from the NYSE and NASDAQ—eToro ensures broad market relevance while mitigating risks associated with less liquid securities [1][6]. The inclusion of ETFs further diversifies the offering, catering to investors seeking exposure to baskets of assets. However, the project does not currently tokenize bonds or real estate, maintaining a focused entry into the RWA sector [5].

Critically, tokenized stocks will not introduce new ownership structures but instead digitize existing equities. This distinction ensures compliance with regulatory frameworks governing traditional securities. eToro’s strategy aligns with recent regulatory developments in the U.S., where the SEC has shown cautious openness to blockchain-based innovations provided they adhere to securities laws [3]. The company has also hinted at potential future expansions, including the development of its own blockchain infrastructure to optimize transaction speeds and reduce costs [4].

From a market perspective, the launch could intensify competition among fintech platforms seeking to bridge traditional and digital finance. By offering 24/5 trading, eToro challenges the dominance of centralized exchanges in determining market access. However, the success of tokenized stocks hinges on adoption rates and the ability to demonstrate tangible benefits, such as reduced settlement times and lower transaction fees, compared to traditional systems [5][8]. Analysts note that while the initiative aligns with long-term trends in financial innovation, its immediate impact will depend on investor confidence in the security and stability of tokenized assets [3].

eToro’s tokenization project underscores the growing convergence of blockchain technology with mainstream financial markets. By prioritizing user accessibility and leveraging Ethereum’s established ecosystem, the platform positions itself at the forefront of a paradigm shift. As more institutions explore tokenization, the distinction between traditional and digital assets may continue to blur, reshaping the landscape of global finance [1][6][8].

Sources:

[1] InvestmentNews, [https://www.investmentnews.com/alternatives/etoro-to-tokenize-us-stocks-on-ethereum-network-for-247-trading/261509](https://www.investmentnews.com/alternatives/etoro-to-tokenize-us-stocks-on-ethereum-network-for-247-trading/261509)

[3] AInvest, [https://www.ainvest.com/news/ethereum-news-today-etoro-launch-tokenized-stocks-ethereum-august-2025-enabling-24-5-trading-2507/](https://www.ainvest.com/news/ethereum-news-today-etoro-launch-tokenized-stocks-ethereum-august-2025-enabling-24-5-trading-2507/)

[4] Fortune, [https://fortune.com/crypto/2025/07/29/etoro-yoni-assia-blockchain-l2-tokenized-stocks-ethereum/](https://fortune.com/crypto/2025/07/29/etoro-yoni-assia-blockchain-l2-tokenized-stocks-ethereum/)

[5] CryptoRank, [https://cryptorank.io/news/feed/7396a-etoro-gets-into-tokenized-us-stocks](https://cryptorank.io/news/feed/7396a-etoro-gets-into-tokenized-us-stocks)

[6] CoinCentral, [https://coincentral.com/etoro-expands-global-reach-with-24-5-trading-and-ethereum-based-stocks-in-the-u-s/](https://coincentral.com/etoro-expands-global-reach-with-24-5-trading-and-ethereum-based-stocks-in-the-u-s/)

[8] Crypto Briefing, [https://cryptobriefing.com/tokenized-us-equities-ethereum/](https://cryptobriefing.com/tokenized-us-equities-ethereum/)