eToro Launches Tokenized US Equities, ETFs, and Futures Trading Amid Regulatory Advances

Crypto and stock trading platform eToro announced on July 29, 2025, that it is launching tokenized trading of U.S. equities, ETFs, and futures. Co-founder and CEO Yoni Assia highlighted recent regulatory milestones as key enablers for this launch. "We’ve been long-term believers in a tokenized future. Blockchain technology will facilitate the greatest ever transfer of wealth, as traditional assets are tokenized and moved onto the blockchain," Assia said. "New regulations, such as MiCA in Europe and the passing of the Genius Act in the U.S., make the tokenization of real world assets a new opportunity to create digital assets that are legally backed and regulated." The new offering will allow retail investors to trade tokenized versions of popular U.S. equities—likely those primarily listed on the New York Stock Exchange and Nasdaq—via ERC-20 tokens on the Ethereum blockchain. Additionally, through a collaboration with CME Group, eToro will offer tokenized futures trading. Assia emphasized the mission behind the initiative: "Our mission has always been to open the global markets. Extended hours trading was the first step, 24/5 takes it a step further, however tokenization brings 24/7 accessibility." In 2019, eToro had already launched tokenized gold and silver products, marking its early foray into asset tokenization. However, eToro cautioned that trading tokenized equities outside traditional market hours could face challenges such as "low liquidity and high volatility."

Tokenized Equities Spark Debate

The tokenization of real-world assets, especially U.S. equities, is widely seen as a major growth area in the crypto space. Trading platforms like Robinhood and Kraken have expressed interest in issuing digital tokens that mirror traditional stocks and enable 24/7 trading. The regulatory treatment of tokenized equities by the U.S. Securities and Exchange Commission (SEC) remains uncertain. While momentum is building to allow U.S. investors to buy and sell tokenized equities such as Tesla, Apple, and Nvidia, most current opportunities have been available primarily to investors outside the United States. Last week, Citadel Securities, one of the world's largest market makers, urged the SEC to treat tokenized equities the same as traditional stocks. In a letter, Citadel emphasized that the SEC should avoid exemptions from securities rules and focus on market liquidity and investor protection. SEC Chair Paul Atkins, known as a crypto advocate, has expressed interest in finding ways to enable firms to tokenize stocks. "It's hard to say exactly where things will go or what will happen, but assets clearly are moving on chain," Atkins said recently. "So if it can be tokenized, it will be tokenized."

Frequently Asked Questions (FAQ)

About Tokenization and eToro's Offering

Q: What does eToro's launch of tokenized U.S. equities, ETFs, and futures mean? A: This launch signifies eToro's expansion into offering traditional financial assets represented as digital tokens on the blockchain, enabling trading with the benefits of tokenization, such as potential for 24/7 access. Q: Which U.S. equities can be traded as tokens on eToro? A: The offering will allow trading of popular U.S. equities, likely those primarily listed on the New York Stock Exchange and Nasdaq, as tokenized versions. Q: What is the role of CME Group in this launch? A: eToro is collaborating with CME Group to offer tokenized futures trading as part of this new initiative. Q: What benefits does tokenization bring to trading? A: Tokenization, as highlighted by eToro's CEO, brings 24/7 accessibility to markets, which was a limitation with traditional extended hours trading. Q: What are the potential challenges of trading tokenized assets outside traditional market hours? A: eToro has cautioned that trading tokenized equities outside traditional market hours might encounter issues like lower liquidity and higher volatility.

Regulatory Landscape and Industry Trends

Q: What regulatory advances are enabling eToro's tokenization efforts? A: CEO Yoni Assia pointed to new regulations such as MiCA in Europe and the passing of the Genius Act in the U.S. as key enablers, making the tokenization of real-world assets legally backed and regulated. Q: What is the broader industry trend regarding tokenized equities? A: The tokenization of real-world assets, particularly U.S. equities, is seen as a significant growth area, with platforms like Robinhood and Kraken also showing interest. Q: What is the SEC's current stance on tokenized equities? A: The regulatory treatment by the U.S. Securities and Exchange Commission (SEC) remains uncertain. While there is momentum to allow U.S. investors to trade tokenized equities, most opportunities have been primarily for non-U.S. investors. Q: What feedback has been given by major market participants regarding tokenized equities? A: Citadel Securities has urged the SEC to treat tokenized equities the same as traditional stocks, emphasizing market liquidity and investor protection over regulatory exemptions. Q: What is the view of SEC Chair Paul Atkins on asset tokenization? A: SEC Chair Paul Atkins expressed interest in enabling firms to tokenize stocks, noting that assets are clearly moving on-chain and that if an asset can be tokenized, it likely will be.

Crypto Market AI's Take

eToro's move to offer tokenized U.S. equities, ETFs, and futures is a significant step in the maturation of digital assets and their integration with traditional finance. This aligns with our platform's mission to provide comprehensive market intelligence and accessible trading solutions. The potential for 24/7 trading, enabled by blockchain technology, directly addresses a key advantage of digital assets. As regulatory clarity increases, as seen with initiatives like MiCA, the pathway for tokenizing real-world assets becomes more defined, offering greater opportunities for investors. Our AI-powered tools are designed to navigate the complexities of both traditional and crypto markets, providing users with insights that can help manage the volatility and liquidity considerations mentioned by eToro. For those looking to understand the broader trends in AI and finance, our insights into AI-driven crypto trading tools and the convergence of AI and blockchain technology offer valuable context.

eToro launching tokenized US equities, ETF and futures trading amid regulatory clarity