EToro Plans to Tokenize U.S. Stocks on Ethereum in Blockchain Push

Digital buying and selling platform eToro (ETOR) shared plans on Tuesday to tokenized U.S-listed equities on the Ethereum blockchain, becoming a member of rivals to transfer in the direction of blockchain-based marketplaces.

The ERC-20 tokens will symbolize the underlying shares held on eToro and will be redeemed again into conventional inventory holdings, in accordance to the press launch. The firm mentioned the intention is to make equities tradable on-chain and suitable with decentralized finance (DeFi) purposes, opening the door to around-the-clock market entry.

“Our goal is to tokenize every asset on eToro – starting with stocks – enabling our users to move tokenized assets onto the blockchain and from there integrate them into the broader DeFi ecosystem,” CEO Yoni Assia mentioned in a press release. “”

He mentioned that new crypto laws like MiCA in Europe and the stablecoin-focused Genius Act in the U.S. “makes the tokenization of real-world assets a new opportunity to create digital assets that are legally backed and regulated.”

The transfer will put eToro alongside a rising roster of buying and selling venues that lately launched tokenized equities. Competitor Robinhood introduced its inventory token buying and selling for European customers final month, whereas a number of crypto exchanges together with Kraken, Gemini, Bybit additionally debuted related options.

EToro mentioned its tokenized inventory providing construct on previous experiences in tokenization, buying Danish token startup Firmo in 2019 and launching tokenized gold and silver.

Read extra: Robinhood Pushes Deeper Into Crypto With Own Blockchain, Tokenized Stock Launch