Have you ever imagined earning returns from traditional stock markets while managing your assets flexibly on the blockchain? Trading platform eToro made this vision a reality on the 29th by announcing plans to tokenize 100 of the most popular US-listed stocks and ETFs, issuing them on the Ethereum blockchain. This strategic move positions eToro at the forefront of the growing blockchain trading market, offering investors round-the-clock trading opportunities five days a week.

Bridging Traditional Finance and DeFi

According to eToro's official statement, these ERC-20 standard tokens will represent actual stocks held by the platform. Users can trade these tokens within eToro's ecosystem or transfer them to the Ethereum blockchain for self-custody, even integrating them with decentralized finance (DeFi) protocols for enhanced asset management flexibility.

"Our vision is to tokenize every asset on the eToro platform, starting with stocks, enabling users to bring tokenized assets into the broader DeFi ecosystem," said Yoni Assia, eToro CEO and co-founder. He emphasized that emerging regulatory frameworks like Europe's MiCA (Markets in Crypto-Assets) regulation and the US GENIUS Act will strengthen the legal foundation for real-world asset tokenization, enhancing legitimacy and security. eToro first explored this space in 2019 with tokenized gold and silver offerings.

Riding the Wave of Real-World Asset Tokenization

eToro's stock tokenization initiative aligns with the global surge in real-world asset (RWA) tokenization. Competitors are making similar moves, with Robinhood announcing in June 2025 its Arbitrum-based Layer-2 blockchain to support US stock tokenization, offering European investors commission-free trading on over 200 stock and ETF tokens.

Swiss token issuer Backed Finance has already launched more than 60 stock tokens across multiple blockchains, including major companies like Netflix, Meta, Tesla, Amazon, and cryptocurrency exchange Coinbase—though these tokens remain unavailable to US and certain restricted jurisdictions.

eToro's strategic expansion not only provides investors with unprecedented flexibility but also lays groundwork for deeper integration between blockchain technology and traditional financial markets, potentially revolutionizing future asset management practices.