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After raising $100 million in March, trading platform eToro has announced plans to launch a cryptocurrency exchange and crypto wallet, as well as plans for its first US expansion. eToro started getting into the crypto space in 2014, when it launched contracts for difference (CFDs), and has since allowed users to buy and sell certain cryptocurrencies via the platform. As such, its decision to deploy a crypto exchange does not come as a surprise.
Here’s what these announcements likely mean for eToro’s business:
Launching a crypto exchange will further diversify its services. eToro is known for its social features that allow investors to copy popular trades by experienced investors. It currently has 250 experts who trade via the platform that customers can mimic. By bringing this service to the crypto space, eToro may be able to onboard customers who wouldn’t usually trade the assets, perhaps due to lack of confidence. That could make the platform attractive to an entirely new crop of investors.
Its launch in the US will give eToro a more global reach. The company already has operations live in the UK, Israel, and Europe, and expanding to the US will allow it to onboard a much larger swathe of customers. eToro will enter the US with only its crypto exchange at first, but other features will likely follow. In fact, it is currently in talks with financial institutions in the US, regulators, and advisors about the move.
eToro’s deep experience in trading and fresh capital will likely help it remain successful. That eToro recently secured a large funding round will likely come in handy for its plans to launch its new crypto services, as well as the move to the US. And, due to the platform’s ability to remove the need to educate oneself extensively on cryptocurrencies before trading, we expect uptake of its latest offerings to be high. As such, the platform is likely poised for continued success, and perhaps further expansion.
Of the many technologies reshaping the world economy, distributed ledger technologies (DLTs) are among the most hyped. DLTs are most often associated with cryptocurrencies like Bitcoin, but such coverage sidelines the broader use cases of DLTs, even though they stand to make a far bigger impact on the broader the financial services (FS) industry.
DLT’s value lies in its ability to centralize record-keeping, while cutting out the need for authorization by an overseeing party, instead allowing a record to be confirmed by multiple parties with access to the database. This means DLTs have the potential to streamline financial institutions’ (FIs) operations, boost data security, improve customer relationships, and drastically cut costs. But many FIs have struggled to implement DLTs and reap the rewards, because of organizational obstacles, but also because of issues rooted in the technology itself. There are a few players working to make the technology more …read more
Source:: Business Insider