eToro to Launch 24/7 U.S. Stock Trading via Tokenization

eToro Group, an Israeli trading platform, has announced plans to launch a tokenized version of U.S.-listed stocks, enabling users to trade stocks at any time. This initiative leverages the Ethereum blockchain and ERC-20 tokens, allowing for seamless and continuous trading. Once live, users will be able to transfer these tokenized stocks between eToro digital wallets, providing a 24/7 trading experience.

The move by eToro is part of a broader strategy to integrate blockchain technology into traditional financial markets. The company has been offering cryptocurrency services to U.S. users since 2019, supporting over 50 digital assets, including Bitcoin, Ethereum, Stellar, and Cardano. In the same year, eToro introduced tokenized products for gold and silver, demonstrating its commitment to innovation in the financial sector.

By tokenizing U.S. stocks, eToro aims to provide its users with the flexibility and convenience of trading around the clock. This development is expected to attract a wider range of investors who seek the benefits of blockchain technology and the security of traditional financial instruments. The tokenized stocks will be issued on the Ethereum blockchain, ensuring transparency and security through decentralized ledger technology.

During a webinar held on Tuesday, eToro's co-founder and CEO Yoni Assia stated, "This actually marks the beginning of digital assets and the tokenization of real-world assets. We are very excited to see this fusion again, where eToro's crypto wallet, which our clients are using to send and receive crypto assets, merges with eToro's stock trading domain."

eToro's announcement comes at a time when other financial platforms are also exploring similar initiatives. Robinhood Markets Inc. had previously announced plans to offer tokenized U.S. securities to its European clients, but the move faced regulatory scrutiny and criticism from OpenAI, the artificial intelligence company. Despite these challenges, eToro's initiative represents a significant step forward in the integration of blockchain technology into traditional financial markets.

The introduction of tokenized U.S. stocks by eToro represents a significant advancement in the financial industry. It not only enhances the accessibility of stock trading but also aligns with the growing trend of integrating blockchain technology into mainstream financial services. This move is likely to set a precedent for other financial institutions, encouraging them to explore similar innovations to stay competitive in the rapidly evolving market.