Post-IPO, eToro Eyes Own Blockchain Amid Tokenized Stocks Push, CEO Yoni Assia Says Talks Underway With Multiple Ecosystems
eToro Group Ltd. (NASDAQ:ETOR) is evaluating partnerships to potentially launch its own blockchain network, CEO Yoni Assia said on Tuesday, as the newly public trading platform seeks to handle millions of monthly transactions on crypto rails.
The Israeli online brokerage, which went public on Nasdaq in May, is in discussions with “four or five” different blockchain ecosystems about creating a sidechain, Assia told Fortune. He declined to identify the specific partners but emphasized that a launch remains months away.
The Need For Own Blockchain
“We can’t run today the millions of transactions that we’re transacting on a monthly basis on existing blockchains,” Assia said. “We’ll need, by definition, to have a dedicated blockchain if we want to run the entire eToro ecosystem.”
Why EToro’s Blockchain Ambitions Matter Now
The blockchain exploration comes as eToro announced Tuesday it will launch tokenized stocks on Ethereum, allowing 24/7 trading of blockchain-wrapped shares from 100 popular U.S. companies and ETFs. European users will gain initial access through a waitlist system.
The move mirrors competitor Robinhood Markets Inc. (NASDAQ:HOOD), which launched tokenized stock trading in the European Union in June and plans its blockchain using Arbitrum’s layer-2 technology. Both CEOs argue that tokenization reduces trading costs and enables round-the-clock market operations.
However, tokenized stocks face regulatory scrutiny over potential disclosure requirement circumvention. Robinhood sparked controversy by offering tokenized OpenAI shares without the AI company’s authorization.
Can Tokenized Stocks Revolutionize Trading?
Assia, who has considered tokenized stocks for over a decade, indicated eToro may expand into private company tokenization “in the near future.”
Cathie Wood‘s ARK Invest has shown confidence in eToro, with ARK Fintech Innovation ETF (NYSE:ARKF) purchasing 35,461 shares in June. Needham analyst John Todaro initiated coverage with a Buy rating and $80 price target, viewing the platform’s crypto-traditional finance bridge as strategically positioned for growth.
Price Action: eToro Group Ltd closed at $60.71 on Tuesday, down $2.79 or 4.39% for the day. As of the latest data, the stock is down $3.44 or 5.36% from its all-time high, according to data from Benzinga Pro.
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