eToro to Pioneer 24/7 Stock Trading by Tokenizing US Equities on Ethereum
Aug 2
2 min read
eToro, a prominent trading and investing platform, has announced its intention to tokenize U.S.-listed stocks, allowing customers to trade equities around the clock. The company plans to issue these tokenized assets as ERC20 tokens on the Ethereum blockchain, with an initial focus on the European market. This move is set to revolutionize stock trading by offering 24/7 accessibility and seamless transfers between eToro digital wallets.
Key Takeaways
eToro will tokenize U.S. stocks on the Ethereum network.
The platform aims to enable 24/7 trading of these tokenized equities.
Tokenized stocks will be transferable between eToro digital wallets.
The offering is expected to launch first in Europe.
An initial list of 100 U.S.-listed stocks and ETFs will be available.
Revolutionizing Stock Trading with Tokenization
eToro's strategic decision to tokenize U.S. stocks marks a significant step towards making financial markets more accessible and flexible. By leveraging the Ethereum blockchain, the platform will issue tokenized versions of equities, enabling users to trade them at any time, irrespective of traditional market hours. This 24/7 trading capability is a major advantage for investors who may have limited availability during standard trading sessions.
European Launch and Future Expansion
While eToro has not yet specified a launch date for the tokenization initiative, the company indicated that the offering would likely commence in Europe. This phased approach allows eToro to test and refine the system in a specific market before a broader rollout. The platform will initially feature 100 U.S.-listed stocks and Exchange Traded Funds (ETFs), providing a diverse range of investment opportunities for its European clientele.
Blockchain Technology and Digital Wallets
The tokenized stocks will be issued as ERC20 tokens on the Ethereum blockchain, a widely adopted standard for creating and managing tokens. This ensures interoperability and security for the digital assets. Furthermore, users will be able to transfer these tokenized stocks between their eToro digital wallets, offering enhanced control and flexibility over their investments. This integration of blockchain technology into traditional stock trading is poised to reshape the investment landscape.
Sources
EToro to Tokenize US Stocks on Ethereum Network for 24/7 Trading, Bloomberg.