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 maneuver in direction of blockchain-based marketplaces.
The ERC-20 tokens will symbolize the underlying shares held on eToro and could be redeemed again into conventional inventory holdings, in response to the press launch. The corporate mentioned the intention is to make equities tradable on-chain and appropriate with decentralized finance (DeFi) purposes, opening the door to around-the-clock market entry.
“Our objective is to tokenize each asset on eToro – beginning with shares – enabling our customers to maneuver tokenized belongings onto the blockchain and from there combine them into the broader DeFi ecosystem,” CEO Yoni Assia mentioned in a press release. “”
He mentioned that new crypto rules like MiCA in Europe and the stablecoin-focused Genius Act within the U.S. “makes the tokenization of real-world belongings a brand new alternative to create digital belongings which might be legally backed and controlled.”
The transfer will put eToro alongside a rising roster of buying and selling venues that just 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.
Learn extra: Robinhood Pushes Deeper Into Crypto With Personal Blockchain, Tokenized Inventory Launch
