eToro is about to make a big move; it plans to launch tokenized U.S. stock services on Ethereum, allowing users to buy U.S. stocks directly using blockchain. This effectively combines traditional stock trading with the crypto space.

Currently, asset tokenization is trending, and Hong Kong has just implemented stablecoin regulations. The RWA market is expected to reach $16 trillion by 2030, and eToro's move is clearly riding the wave. After all, it was built on social investing and crypto business, and its crypto revenue doubled in 2024, so this move seems quite logical.

However, it’s not that simple. Previously, both FTX and Binance attempted to tokenize stocks but had to halt due to regulatory pressure. eToro's choice of Ethereum provides good on-chain liquidity, but the price volatility risk is considerable. For instance, Backed Finance's xStocks saw prices soar to hundreds of times their value on the platform; how can ordinary users withstand that?

Compliance is another hurdle; they must satisfy both the U.S. SEC and the Hong Kong Monetary Authority at the same time. For example, how to custody and audit the underlying stocks? If a user buys a tokenized Tesla but there's no corresponding actual stock, that would be a huge problem.

However, if it works out, there will be plenty of ways to play: using tokenized stocks for collateral in DeFi lending, or leveraging eToro's social features to buy and discuss stocks alongside influential figures, which is much more flexible than traditional stock trading.

It all depends on whether eToro can manage compliance and risk. If successful, it could set a benchmark; if it fails, it might become a cautionary tale. Do you think this is a genuine trend, or just another hype cycle? #美股联动