On Tuesday, trading platform eToro announced during its global webinar, “eToro Unlocked: Trade Without Boundaries”, that it will introduce tokenized US stocks and ETFs on the Ethereum network.
eToro Tokenized Stocks: Real Shares as ERC-20 Tokens
eToro plans to tokenize 100 leading US stocks and ETFs as ERC-20 tokens, each backed 1:1 by real shares held by the company. These digital tokens can be used for actual stock positions on eToro and vice versa, merging traditional investing with crypto flexibility.
Tokenization enables 24/7 trading, unlike traditional markets with limited hours, and allows faster, borderless transactions.
CEO Yoni Assia described blockchain as the key to the “greatest wealth transfer ever” as real-world assets move on-chain. In a press release, he said: “New regulations, such as MiCA in Europe and the Genius Act in the US, make tokenization of real-world assets a new opportunity to create legally backed and regulated digital assets. The benefits of tokenization, especially 24/7 transferability, have been clearly demonstrated by stablecoins, and these opportunities are now expanding to more asset classes.”
In the US and EU, tokenized stocks are rapidly gaining traction as companies and platforms bridge traditional finance and DeFi. Coinbase is seeking SEC approval to launch tokenized US equities, with CLO Paul Grewal calling tokenization “the future of finance.”
Ondo Finance, after acquiring Oasis Pro, is using its broker-dealer license to develop tokenized versions of over 1,000 publicly listed US equities for global investors, working with the SEC’s Crypto Task Force to ensure compliance.
However, some critics oppose stock tokenization. The Securities Industry and Financial Markets Association (SIFMA) recently urged the SEC’s Crypto Task Force to reject special permissions for crypto firms offering tokenized stocks, arguing they should follow standard regulatory procedures.
SEC Chair Paul Atkins has shown a pro-innovation stance, committing to advancing tokenization through clear regulatory guidance. Proposals like the “innovation exemption” post-stablecoin legislation aim to ease restrictions for tokenized securities.
The GENIUS Act and STABLE Act are creating pathways for tokenized securities by clarifying commodity-classified assets, though tokenized stocks remain classified as securities or derivatives, requiring strict SEC compliance.
US platforms like Securitize, an SEC-registered broker-dealer, manage about $38 billion in tokenized assets, focusing on issuance and secondary trading. In June 2025, Securitize raised $47 million, showing strong institutional support.
Fundfa View
eToro’s move into tokenized US stocks and ETFs on Ethereum reflects the accelerating convergence of traditional and decentralized finance. If regulatory approvals proceed smoothly, this could open new global access to US equities with the speed and flexibility of blockchain.