Tokenized stocks, a digital form of equity assets, are entering a phase of broader availability through platforms willing to experiment with blockchain systems. One of the most recent and notable moves came from eToro, which confirmed that it will soon introduce tokenized versions of 100 widely held U.S.-listed stocks and ETFs. These digital tokens are structured to function like traditional stocks but are traded on the Ethereum blockchain.
What Are Tokenized Stocks?
Tokenized stocks are blockchain-based digital tokens that replicate the price of actual shares, such as those of Amazon or Tesla. The tokens generally maintain a 1:1 ratio with their corresponding assets, though the balance can be influenced by liquidity levels and actual trading activity. They’re designed to mirror – not hold – the stock, which means users get price exposure without having direct ownership.
Although these digital instruments resemble stocks in price, they don’t carry voting rights or dividend claims. Holders do not gain any shareholder privileges. Instead, they interact with intermediary contracts where the issuer typically retains ownership of the underlying shares and issues a matching token.
Several platforms already offer tokenized stock services, including Robinhood in Europe, Kraken, and Gemini. They provide access to U.S. equities, sometimes referred to as “xStocks.” These platforms target users outside the United States, offering extended trading hours and fractional investments. However, limited liquidity and fluctuating trading volumes have caused prices to diverge, sometimes by as much as 300% during off-hours.
Read also: What Are Automated Market Makers (AMM)?
Round-the-Clock Access and Smaller Investment Options
One of the main appeals of tokenized stocks is expanded trading availability. Traditional markets close each day and remain shut on weekends, limiting trading windows. In contrast, tokenized versions may be accessible 24/5 or even 24/7, depending on the platform. This change benefits retail investors operating in different time zones or seeking flexibility beyond standard hours.
Fractional investing is another advantage. Tokenized shares can be divided into smaller units, allowing users to buy a fraction of high-priced stocks. This lowers the barrier for entry and opens up access to names that might otherwise be unaffordable. For example, someone unable to buy one full share of Alphabet or Nvidia could still gain exposure using tokens.
There’s also a technical layer to the appeal. Since these assets are blockchain-based, they can be used within DeFi platforms. Holders may stake, lend, or collateralize their tokenized stock without having to sell it. This function isn’t available with traditional brokerage-held equities and appeals to users already engaged with digital finance tools.
Read also: Polymarket Plans to Launch Own Stablecoin After Rapid Growth
eToro Steps Into Tokenized Stock Trading
In July 2025, eToro revealed it would soon launch tokenized versions of 100 stocks and ETFs. These tokens will operate as ERC-20 assets on the Ethereum blockchain and be tradable five days a week, around the clock. According to eToro, users will also be able to withdraw their tokenized assets to personal wallets, a key point that separates this offering from other platforms.
The company states this move is part of a broader vision to tokenize all assets on its platform. In this first phase, eToro users will have the option to redeem tokenized stocks into underlying positions and switch back when needed. This flexibility is rare among existing providers and shows a clear intent to let users manage their assets without relying on eToro as the sole custodian.
New regulatory guidance helped clear the way. The recently passed MiCA regulation in the EU and the U.S. Genius Act offer legal recognition for digital securities, allowing platforms like eToro to operate with less legal uncertainty. CEO Yoni Assia said:
“Tokenization removes boundaries, providing transparency and control. It has the potential to democratize finance, making assets more accessible to more people.”
The broker has not yet released an exact launch date, but the announcement signals growing competition in this space. Companies like Kraken, Robinhood, Backed Finance, and Coinbase are already building similar products. eToro’s plan to offer DeFi compatibility and redemption flexibility may give it an edge as more investors explore blockchain-based asset trading.
