Tel Aviv-based trading platform eToro will be acquiring Dutch blockchain company Firmo, the former said in a statement today.
eToro has agreed to acquire Dutch company Firmo to give its digital infrastructure for tokenized financial assets a significant boost. In a public statement, eToro said it has acquired the Copenhagen-based company because of its stellar research and development team.
The financial terms of the deal have not been disclosed, but one can easily understand why it went through. Firmo’s existing platform executes financial contracts on multiple blockchains. With it, companies can create financial products like cryptocurrency derivatives or lending services. eToro likely wishes to harness this technology towards building its own cryptocurrency asset trading system. This system would potentially support the tokenization of many traditional assets, from real estate to stocks.
The tokenization of traditional assets, like real estate, has been a much-hyped concept going into 2019. Falling into the realm of security tokens, tokenization would aim to increase liquidity in markets which have been historically illiquid.
According to Bloomberg, eToro is also looking for additional acquisitions. The company seems to be rapidly expanding, but it declined to comment further.
eToro was founded in 2007 as a trading platform offering investors a place to exchange cryptocurrencies, stocks, and commodities. Its reach is massive, with some 10 million users in Europe, Asia, and the Middle East. The company raised around $162 million in its initial funding round. With its already-established footing, eToro seems committed to steadily expanding to other markets and, most importantly, solidifying its place in the future token economy.
Do you have any thoughts on eToro’s acquisition of Firmo? Will eToro be a major player in the cryptocurrency space a year from now? Let us know your thoughts in the comments below.
[Editor’s Note: BeInCrypto is independent and has no relationship with or connection to eToro.]