eToro Group Ltd. (NASDAQ: ETOR) is advancing its long-term strategy of moving towards a tokenised future after announcing the introduction of tokenised stocks and ETFs on its platform.
The company plans to list tokenised versions of 100 of the U.S.’s most popular stocks and ETFs, to be available for trading 24 hours a day, Monday through Friday.
eToro has also expanded its Futures offering to include spot-quoted futures, making it “one of the first platforms” to provide the service.
The announcement comes amid a fading interest in tokenised stocks, according to a Dune dashboard for xStocks prepared by Sealaunch. xStocks is the tokenised stocks product by Backed Finance, used by leading exchanges, which offers tokenised stocks listed on Kraken, Bitrue, Bybit, and others.
At the start of July, xStocks averaged a daily transaction volume of about 2.9 million. That figure has now fallen to about 2.2 million.
But could eToro re-ignite the interest in tokenised stocks? The platform boasts over 3.5 million funded accounts, according to its pre-IPO financials. The company also believes that the future of financial markets is tokenised, which is why it is expanding to tokenised stocks.
Commenting on his company’s latest product launches, eToro Co-founder and CEO, Yoni Assia, said: “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.”
According to Assia, one of the biggest hurdles that hinder the mass adoption of tokenised assets is vested interests, but key milestones are being made with recent announcements.
“New regulations, such as MiCA in Europe and the passing of the Genius Act in the US, makes the tokenization of real-world assets a new opportunity to create digital assets that are legally backed and regulated,” said Assia.
“The benefits of tokenization, in particular 24/7 transferability, have been clearly demonstrated by stablecoins and these opportunities are now expanding to more asset classes.”
