Israeli trading platform eToro said Tuesday it will roll out tokenized trading for U.S. equities, ETFs, and futures, aiming to offer 24/7 access to traditionally time-bound markets.
The plan will allow investors to trade tokenized versions of stocks like Apple, Tesla, and Nvidia via ERC-20 tokens on Ethereum. Futures trading will be offered through a partnership with CME Group.
CEO Yoni Assia said recent developments in regulation helped open the door. “New frameworks like MiCA in Europe and the Genius Act in the U.S. are making it possible to turn traditional assets into regulated digital tokens,” he said.
eToro’s move adds to the growing interest in tokenized equities, which let investors trade around the clock by moving stock ownership onto blockchain rails. Assia described the shift as the next step after extended-hours trading: “Tokenization brings 24/7 accessibility.”
The company previously launched tokenized gold and silver in 2019. This new product brings U.S. stocks into the mix — though for now, it’s expected to be limited to users outside the U.S.
eToro also warned that after-hours tokenized stock trading could be subject to lower liquidity and higher volatility, depending on demand.
Trading tokenized shares has become a hot topic in crypto circles, with platforms like Robinhood and Kraken exploring similar offerings. But regulatory clarity remains a sticking point. Last week, Citadel Securities urged the SEC to treat tokenized stocks the same as traditional ones and not create carveouts from core market rules.
Citadel argued that without proper oversight, tokenized products could pull trading activity away from public markets and into fragmented liquidity pools that traditional institutions, such as pension funds or endowments, may struggle to access.
SEC Chair Paul Atkins said tokenization is hard to ignore. “If it can be tokenized, it will be tokenized,” he said. But how that plays out under U.S. securities law is still in question.
On the institutional front, Goldman Sachs and BNY are preparing to roll out tokenized money market funds for their wealthy investors, as Wall Street steps further into blockchain-based finance.
Clients of BNY, the world’s largest custodian bank, will soon be able to invest in money market funds recorded directly on Goldman’s private blockchain, the firms said Wednesday. The new system promises faster settlement, broader market access, and potentially lower back-office costs.
Moody’s reported last month that tokenized short-term funds have reached $5.7 billion in assets since 2021, with asset managers and brokerages offering clients faster access between fiat and digital markets.
