In a recent interview with Fortune, eToro (ETOR) CEO Yoni Assia shared the company’s interest in potentially developing its own blockchain. This exploration comes as the online brokerage, which went public on the Nasdaq in May, evaluates partnerships with various blockchain ecosystems.
Assia highlighted the limitations of existing blockchains, stating, “We can’t run today the millions of transactions that we’re transacting on a monthly basis on existing blockchains.”
The executive believes that a dedicated blockchain is necessary to support the entire eToro ecosystem and accommodate its user base and transaction volume.
This new feature will allow users to trade tokenized stocks 24/7, with an initial offering of 100 popular US companies and exchange-traded funds (ETFs). Currently, access to these blockchain-based assets will be available only to European users on a wait-list basis.
This strategic move follows a similar initiative by competitor Robinhood Markets Inc. (HOOD), which announced plans to offer tokenized US securities to its European customers.
However, Robinhood’s announcement faced skepticism from regulators, particularly due to its association with a promotional giveaway of OpenAI “tokens” that were later clarified as derivative contracts rather than actual equity.
As of Tuesday’s close, eToro’s stock, ETOR, had dropped 4%, closing at $60 per share. This decline represents a %24 gap from its record peak of $79 reached on June 10.
Featured image from DALL-E, chart from TradingView.com
