eToro introduces perpetual trading alongside futures and stock tokens, available for trade five days a week.
eToro Group Ltd., a leading global social investment platform, has announced plans to launch tokenized US-listed stocks as ERC-20 tokens on the Ethereum blockchain, starting with 100 of the most popular US stocks and ETFs. This initiative marks a significant step towards integrating traditional finance assets with blockchain technology and decentralized finance (DeFi).
24/5 Trading Offering
The new offering will enable 24/5 trading (trading 24 hours a day, five days a week), providing users with greater flexibility compared to traditional markets that are limited to specific hours. This move is expected to initially roll out for European customers around August 2025.
Tokenized Stocks on Ethereum
Each token represents shares held by eToro in custody, ensuring the token corresponds to actual stock ownership. Users will be able to move tokenized assets onto the blockchain and redeem them for the underlying position on eToro and vice versa.
Democratizing Finance
eToro CEO Yoni Assia believes that tokenization eliminates boundaries by providing transparency, control, and broader accessibility to stock investments. He sees this as a means to democratize finance, making it more accessible to a wider audience.
DeFi Integration and Transferability
Tokenized stocks can be used within decentralized finance ecosystems, such as collateral for loans or other blockchain-based financial products. Users can move tokenized stocks off the platform into self-custody wallets or further into DeFi protocols, with the ability to move them back to eToro if desired.
A Long-Term Vision for Tokenization
This initiative builds on eToro’s prior work in tokenizing assets like gold and silver since 2019. Yoni Assia, co-founder and CEO of eToro, is a long-term believer in a tokenized future. His goal is to tokenize every asset on eToro, starting with stocks, and integrate them into the broader DeFi ecosystem.
eToro has also expanded its futures offering to include spot-quoted futures, a collaboration with CME Group. These innovative futures contracts provide users with greater flexibility to trade stock and crypto markets.
The launch of tokenized US-listed stocks is a significant step towards eToro’s vision of a tokenized future, where traditional finance assets are integrated with blockchain technology and DeFi. This move is expected to democratize finance, provide greater accessibility, and facilitate the greatest ever transfer of wealth, according to Yoni Assia.
[1] eToro Group Ltd. press release, [date] [2] CoinDesk article, [date] [3] Finance Magnates article, [date] [4] Business Insider article, [date]
- Through tokenization, each tokenized stock corresponds to actual ownership of shares held by eToro, providing a direct link between digital assets and traditional equities.
- With the integration of blockchain technology, users can engage in 24/5 trading, offering them more flexibility compared to traditional market hours, as part of eToro's new offering.
- Yoni Assia, CEO of eToro, is a firm believer in democratizing finance through tokenization, as he sees it as a means to eliminate barriers and broaden access to stock investments.
- In the long term, eToro aims to tokenize every asset on its platform, starting with stocks, and integrate them into the decentralized finance (DeFi) ecosystem, where tokenized assets can be used within DeFi ecosystems, including for collateral or as part of blockchain-based financial products.