Leading social trading platform and multi-asset brokerage company eToro has acquired smart contract firm Firmo. The purchase will help eToro tokenize all assets on its platform.
Tel Aviv-based eToro will be using Firmo’s research and development team to assist it in tokenizing assets on its platform.
Yoni Assia, co-founder and CEO of eToro says,
“The acquisition of Firmo will enable eToro to accelerate the growth of our tokenized assets offering. Blockchain and the tokenization of assets will play a major role in the future of finance. We believe that in time all investible assets will be tokenized and that we will see the greatest transfer of wealth ever onto the blockchain.“
Blockchain and crypto enthusiasts expect tokenized assets to replace their analog counterparts. Through tokenizing, assets can become divisible, accessible and immutable. Value transfer can be handled through the blockchain without the need for a number of intermediaries, often handling and verifying paperwork.
Says Omri Ross, CEO and founder of Firmo says,
“The advent of crypto and the blockchain technology that underpins it has driven an explosion in financial innovation; however, a number of challenges are preventing mass adoption and integration into legacy infrastructure. Our goal is to enable our users to trade any asset globally with instant settlement by tokenizing assets and executing all essential trade processes on the blockchain.“
The Copenhagen-based Firmo startup uses underlying technology that will allow eToro to securely deploy financial contracts while supporting a number of blockchain platforms, including Ethereum, EOS and NEO.
Digitized information containing sensitive data will be transacted on and across blockchains as smart contracts are automatically executed. Assia believes tokenization will bring enormous opportunities that will exceed the internet and allow eToro and other blockchain-based companies to dramatically reshape capital markets.
“Tokenize the world” has become a mantra for crypto enthusiasts who plan to usher in a new financial era where legacy infrastructure has faded away in the same way that Blockbuster Video, Tower Records and many Barnes and Nobles locations have shut down in the wake of widespread digitization of content and distribution across the internet. Likewise, asset tokenizing is a way to transfer value on the internet.
eToro has over 10 million registered users. As it enters the emerging market of tokenized commodities, stocks and cryptoassets, the platform has some critical advantages. Its existing network allows users to gain insight from other users about what to buy. It also helps users keep track of those assets as well as store them.
The multi-asset platform offers both investing in stocks and cryptoassets, as well as trading CFDs.