- Trading platform eToro announced the coming launch of its tokenized US stocks and futures via the Ethereum chain.
- The company leverages the favorable regulatory climate in the US and EU, owing to the implementation of the GENIUS Act and MiCA regulations.
Trading platform eToro announced today its plan to roll out tokenized US equities, exchange-traded funds (ETFs), and futures. The brokerage company will tap into the Ethereum (ETH) chain for the new feature.
eToro Integrates Tokenization with Traditional Investments
Yoni Assia, CEO and co-founder of eToro, believes the developments in the US regulatory climate give them an opportune moment to integrate blockchain tech with traditional investment vehicles. The company boss stated that the move will help democratize access to investments, ultimately allowing more retail investors to participate in wealth-generating activities.
“We’ve been long-term believers in a tokenized future,” said Assia. “Blockchain technology will facilitate the greatest ever transfer of wealth, as traditional assets are tokenized and moved onto the blockchain.”
Taking Advantage of Favorable Regulations
Assia particularly highlighted Europe’s Markets in Crypto-Assets (MiCA) law and the GENIUS Act in the US as pivotal events that could jumpstart further innovations in real-world assets (RWA) tokenization.
“Hurdles remain, namely vested interests; however, we are witnessing key milestones on that journey,” he added. “New regulations, such as MiCA in Europe and the passing of the Genius Act in the US, make the tokenization of real-world assets a new opportunity to create digital assets that are legally backed and regulated.”
The eToro CEO emphasized that tokenization paves the way for the broader availability of investment instruments. Among its fruits are stablecoins that boost the transferability of value across assets.
“The benefits of tokenization, in particular 24/7 transferability, have been clearly demonstrated by stablecoins, and these opportunities are now expanding to more asset classes,” Assia noted.
Initially, eToro plans to expand its 24/5 trading offering to cover the top 100 stocks and ETFs in the US. Besides its tokenization efforts, the trading platform is adding spot-quoted futures from the CME Group that deal with major assets like Bitcoin (BTC), the S&P500, and the Nasdaq100, featuring small contract sizes and longer-dated expiries. Again, these aim to provide customers with flexibility in their trading strategies.
About eToro
The services of eToro have been available to over 40 million registered users since 2017 across 75 countries. The company has secured licenses and registrations under various jurisdictions, with its key markets situated in the UK (via the Financial Conduct Authority), Gibraltar (via the Gibraltar Financial Services Commission), Europe (via the Cyprus Securities Exchange Commission), Australia (via the Australian Securities & Investments Commission), and Israel (via the Israeli Securities Authority).
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