eToro, a multi-asset trading platform, has announced the acquisition of blockchain firm Firmo Network.
Firmo Network is a Copenhagen-based blockchain startup working on the development of smart contracts for derivatives and to securely enable them on any blockchain – public or private.
Commenting on this major acquisition, Yoni Assia, co-founder and CEO of eToro, said: “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 investable assets will be tokenized and that we will see the greatest transfer of wealth ever onto the blockchain.”
As per the press release, the Danish company will act as an internal innovation unit of the Israeli social trading platform. The blockchain startup will be responsible for research and development of infrastructure for the representation of assets and the execution of trade processes on blockchain infrastructure.
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“The Firmo team has done ground-breaking work in developing practical applications for blockchain technology which will facilitate friction-less global trading. The adoption of smart contracts on the blockchain increases trust and transparency in financial services,” Assia added. “We are incredibly proud and excited that they will be joining the eToro family. We believe that together we have a very bright future and look forward to pursuing our shared goal to become the first truly global service provider allowing people to trade, invest and save.”
The ten-member team of Firmo will operate from its existing office in Denmark.
Betting Big on Crypto
Launched in 2007, eToro is betting heavily on crypto and blockchain. Earlier today, Finance Magnates reported that the trading platform had added Tron (TRX) for trading, which took the count of its crypto offerings to 15.
The trading firm is also expanding heavily on a global scale as earlier this month it started offering its services in 31 states in the United States. Moreover, its cryptocurrency arm has gained a license from Gibraltar to operate a blockchain-based business from the crypto friendly region.
“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,” Dr. Omri Ross, founder and CEO of Firmo, added. “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.”