• eToro will tokenize ~100 U.S. stocks and ETFs as ERC-20 tokens, enabling 24/5 trading and eventual DeFi integration.
  • Initial rollout targets European users via waitlist, with plans for broader expansion.
  • The move follows regulatory tailwinds like MiCA and the U.S. "Genius Act," positioning tokenized equities as compliant RWAs.

eToro's Tokenized Equity Push

eToro CEO Yoni Assia announced the platform's plans to launch tokenized versions of popular U.S.-listed stocks and ETFs, beginning with a Europe-focused waitlist. The tokens, issued as ERC-20 assets on Ethereum, will represent underlying equities held by eToro and offer redeemability into traditional stock positions. Over time, the firm aims to enable off-platform transfers for self-custody and DeFi use.

The initiative expands eToro's extended-hours trading, with tokenized stocks available 24 hours a day, five days a week (24/5). Assia cited regulatory milestones—including the EU's Markets in Crypto-Assets (MiCA) framework and U.S. stablecoin legislation—as key enablers. "Tokenization brings interoperability, transparency, and near-24/7 market access," he noted in a statement.

Competitive Landscape and Roadmap

The launch follows similar offerings from Robinhood, Kraken, and others, signaling a broader industry shift toward tokenized equities. eToro's choice of Ethereum mainnet distinguishes its approach, leveraging the network's DeFi liquidity. Early adopters will gain access to ~100 tokens, with plans to expand the selection and enable wallet withdrawals.

Analysts highlight potential benefits, such as fractional access and collateral mobility in DeFi, but caution about smart-contract risks and off-hour volatility. eToro has not disclosed financial metrics tied to the rollout but emphasized its 2019 acquisition of tokenization startup Firmo as foundational to the effort.

Regulatory and Market Implications

While the initial focus avoids contentious private-company tokens, the move could test disclosure frameworks for public equities traded on-chain. eToro's phased approach—starting with Europe—reflects cautious regulatory engagement. "We’re aligning with evolving rules to ensure compliance," Assia said, though critics warn of potential arbitrage risks.

Future updates may include deeper DeFi integrations and, per hints from eToro, exploration of a proprietary blockchain. For now, the firm joins a crowded field racing to tokenize real-world assets, with Robinhood’s recent L2 push adding competitive pressure.