In an insightful dialogue featured by Fortune, the CEO of eToro, Yoni Assia, revealed the company’s ambitions regarding the creation of its own blockchain infrastructure. This initiative is part of a broader evaluation as eToro, which made its public debut on the Nasdaq in May, explores collaborations with various blockchain platforms.
eToro Explores Blockchain Innovation
Assia noted that they are engaging in conversations with “multiple” emerging technology platforms, although specific partnerships remain unconfirmed. He clarified that any potential rollout won’t be rushed, suggesting a sidechain model—a lightweight blockchain that operates in tandem with an existing one—could enhance eToro’s operational framework.
He identified challenges with current blockchain solutions, asserting, “We cannot handle the vast number of transactions generated each month with current blockchain options.”
Assia advocates for a custom blockchain solution to fully support eToro’s growing ecosystem, ensuring it meets the demands of its expanding user base and transaction needs.
Coinciding with Assia’s commentary, eToro also unveiled its intentions to launch tokenized stock offerings on the Ethereum network. Tokenization simplifies traditional stocks into digital formats that can be traded seamlessly via blockchain technology.
This development enables users to trade tokenized stocks continuously, featuring an initial selection of 100 well-known US companies and exchange-traded funds (ETFs). However, access to these assets will currently be limited to Europe-based users on a waitlist basis.
Tokenized Share Trading on Ethereum
According to a report by Bloomberg, eToro plans to make tokenized versions of US stocks available for 24/7 trading. These digital assets will be represented as ERC20 tokens on the Ethereum blockchain, facilitating easy transfers of tokenized shares within eToro’s digital wallet infrastructure. The platform expects to support 24/5 trading initially, thereby enhancing asset availability for users.
“This marks the dawn of digital assets and the tokenization of real-world investments,” Assia expressed during an engaging webinar. He conveyed enthusiasm about integrating eToro’s crypto wallet services with traditional stock trading, aiming for a unified and user-friendly experience for those involved in both markets.
This proactive approach follows a similar path taken by Robinhood Markets Inc., which recently announced its own plans to provide tokenized US securities to its European clientele.
Nonetheless, Robinhood’s initiatives have met with regulatory scrutiny, primarily due to concerns linked to a past promotional event connected with so-called OpenAI “tokens,” which were later clarified as derivatives rather than genuine equities.
As of the latest trading session, eToro’s stock (ETOR) experienced a decline of 4%, finishing at $60 per share—marking a notable 24% decrease from its peak of $79 recorded on June 10.
Image credit: DALL-E; Chart data from TradingView.com
