eToro Launches Tokenized 24/7 Trading for US Stocks and Futures
eToro is preparing to launch tokenized versions of US stocks, ETFs, and futures contracts, allowing investors to trade 24 hours a day using ERC-20 tokens based on Ethereum. This move follows the launch of tokenized metals in 2019.
In the latest forex broker news, it's been reported that forex broker eToro is preparing to shake up the US trading market with plans to launch tokenized versions of US stocks, ETFs, and futures contracts—available 24/7. This move sets apart the social trading broker from the traditional market, where trading hours are limited.
This new service will allow investors to trade major stocks like Apple, Tesla, and Nvidia as ERC-20 tokens on Ethereum. Futures contracts will be offered in collaboration with CME Group, expanding access to key derivatives in token form. Forex broker eToro first entered the tokenization space in 2019 with gold and silver, and this latest expansion means that US investors will soon have a wider range of tokenized assets, from precious metals to futures contracts.
CEO of eToro, Yoni Assia, said this shift was made possible by evolving regulations. "New frameworks like MiCA in Europe and the Genius Act in the US allow traditional assets to be transformed into regulated digital tokens," he explained.
Tokenized stocks have become a hot topic in the crypto world recently, with platforms like Robinhood and Kraken attempting similar moves. However, regulation is still unclear.
Last month, Citadel Securities urged the SEC to treat tokenized stocks the same as traditional stocks, warning that looser supervision could draw liquidity from the public market. SEC Chairman Paul Atkins concluded: "If it can be tokenized, it will be tokenized." The real question now is how US securities laws will adapt.