Ethereum News: eToro’s Revolutionary Plan to Tokenize 100 US Stocks for 24/5 Trading in 2025
In a groundbreaking move, eToro has announced plans to tokenize 100 of the most popular US stocks and ETFs as Ethereum ERC-20 tokens, set to launch in August 2025. This Ethereum news marks a significant step towards merging traditional finance with blockchain technology, offering investors unprecedented flexibility.
What Does Tokenizing Stocks on Ethereum Mean?
Tokenization converts traditional assets into digital tokens on the blockchain. eToro’s initiative will:
- Create ERC-20 tokens backed 1:1 by physical shares
- Enable 24/5 trading outside traditional market hours
- Allow seamless transfer of tokenized stocks across platforms
- Potentially enable use as collateral in DeFi applications
Why This Ethereum News Matters for Investors
The tokenized stocks initiative addresses several limitations of traditional markets:
| Traditional Market | Tokenized Stocks |
|---|---|
| Limited trading hours | 24/5 trading availability |
| Geographic restrictions | Global accessibility |
| Slow settlement times | Near-instant transactions |
eToro’s Selection of Tokenized Stocks
The platform will focus on the 100 most popular US stocks and ETFs from NYSE and NASDAQ, ensuring:
- High liquidity
- Broad market relevance
- Reduced volatility risks
Regulatory Considerations for ERC-20 Tokenized Assets
eToro’s approach maintains compliance by:
- Not creating new ownership structures
- Keeping 1:1 backing with physical shares
- Aligning with SEC guidelines for blockchain innovations
The Future of 24/5 Trading with Tokenized Stocks
This Ethereum news signals a potential paradigm shift in financial markets. As more institutions explore tokenization, we may see:
- Increased competition among fintech platforms
- Greater integration between traditional and digital finance
- New financial products leveraging blockchain technology
Frequently Asked Questions
When will eToro’s tokenized stocks launch?
The platform plans to launch in August 2025.
Which stocks will be tokenized?
eToro will tokenize the 100 most popular US stocks and ETFs from NYSE and NASDAQ.
Can I use tokenized stocks in DeFi applications?
While not confirmed, the ERC-20 standard makes this technically possible.
How does tokenization differ from traditional stock ownership?
Tokenization represents existing shares on blockchain, offering greater flexibility in trading and transfer.
Are tokenized stocks regulated?
Yes, eToro’s approach maintains compliance with existing securities regulations.
