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- eToro has disclosed that it will launch tokenized US equities on Ethereum as part of its efforts to advance its tokenization strategy.
- The company has also confirmed a collaboration with CME Group to launch spot-quoted futures.
Trading and investment platform eToro has announced that it is expanding its trading offering to make provisions for an initial list of 100 top US-listed stocks and Exchange Traded Funds (ETFs).
According to the report, these would be tokenized as ERC‑20 assets on Ethereum and backed by the 1:1 shares held by the platform.
Details of the Story
Speaking on its tokenization moves, eToro co-founder and CEO, Yoni Assia, highlighted that the platform has been a long-term believer in the tokenized future. According to him, they also agree that blockchain could play a big role in this future by hosting tokenized traditional assets and facilitating “the greatest ever transfer of wealth.”
Shedding more light on this, Assia disclosed how new regulations in Europe and the GENIUS Act passage in the US create opportunities and make the whole operation legally backed.
As highlighted in our recent publication, the Genius stablecoin bill had a bipartisan vote of 308-122. Fascinatingly, the US authorities are reported to be exploring approaches to incentivize asset tokenization through innovation exemption, as detailed in our earlier discussion.
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 benefits of tokenization, in particular 24/7 transferability, have been clearly demonstrated by stablecoins, and these opportunities are now expanding to more asset classes.
Apart from this, eToro has also expanded its futures offering with the introduction of spot-quoted futures in collaboration with CME Group. While providing users with greater flexibility to trade cryptos and stocks, the futures contracts ensure that there are longer-dated expiries and spot-based pricing.
eToro’s Tokenization Journey
eToro’s involvement in tokenization has never been in doubt since 2012, when Assia co-authored the Colored Coins whitepaper. One of its notable engagements was the launch of tokenized gold (GOLDX) and silver (SLVX) following the acquisition of Danish startup Firmo. Confirming this, Assia highlighted in a statement that eToro began its tokenization journey in 2019 and has now been able to progress significantly.
According to Assia, tokenizing every asset on the platform is its priority, starting with stock. With this, users would be able to seamlessly move tokenized assets into the blockchain and also redeem tokenized stock for the underlying position on eToro.
Our mission has always been to open the global markets. Extended hours trading was the first step, 24/5 takes it a step further, however, tokenization brings 24/7 accessibility.
Amidst the backdrop of this, eToro has confirmed plans for a Nasdaq listing following the filing for an Initial Public Offering (IPO) in the US, as noted in our earlier news brief. As also mentioned in our previous coverage, the platform has reached a settlement with the US Securities and Exchange Commission (SEC), clearing its legal dispute, and has relisted 12 tokens to expand its offering.
