Internet brokers may launch a Blockchain-based US stock trading platform

Recently, the tokenization of US stocks is becoming a new hotspot in the cryptocurrency market. Following the announcement of related plans by several well-known exchanges, an internet broker may also join this trend.

According to reports, the internet brokerage is developing a Blockchain-based platform that allows European retail investors to trade US stocks. Insiders reveal that the technology selection for this platform may involve a certain Layer 2 network or a public chain, and specific partners are still under discussion.

This news has sparked widespread speculation in the market. Some analysts believe that the company may directly integrate a certain Layer 2 network into the new platform as the foundational layer for Blockchain transactions. Another possibility is that the company plans to develop a proprietary Layer 2 chain using the technology stack of that Layer 2 network.

Regardless of which plan is ultimately adopted, this means that the internet brokerage is actively preparing for the tokenization of US stocks and may independently develop a dedicated Layer 2 to support on-chain settlement and specialized services.

The company has previously expressed interest in the tokenization of US stocks multiple times. In January of this year, the company's CEO criticized the current US regulations for lacking a clear registration framework for security tokens, which hinders the promotion of tokenized products. In March, the CEO stated in a podcast: "Right now, if you are overseas, it's very difficult to invest in a US company." This reflects the strong demand from non-US investors for convenient ways to trade US stocks.

From a technical perspective, a certain Layer 2 network is fully compatible with EVM, which will allow the company to seamlessly migrate existing Ethereum smart contracts and development tools. In addition, the Optimistic Rollup technology of this Layer 2 network strikes a balance between transaction confirmation time and cost, which is an advantage for platforms that need to handle large-scale user transactions.

From a business perspective, choosing a certain Layer 2 network may also be to avoid direct competition with other exchanges. It is worth noting that the internet brokerage had previously collaborated with a certain Layer 2 network, which laid the foundation for further deepening cooperation between the two parties.

However, some viewpoints suggest that if the company really launches a proprietary chain based on a certain Layer 2 network, it may be seen as an imitation of similar products from other exchanges. To avoid this impression, it has been suggested that the company should take a "closed ecosystem" approach, migrating all existing financial products, assets, and users onto the chain to achieve complete on-chain operations.

Regardless of the strategy ultimately adopted, this move will bring new vitality to the U.S. stock tokenization market and may have a profound impact on the Ethereum ecosystem. We look forward to the company unveiling more details in its official announcement in the future.