The Tel-Aviv-based social investment platform, eToro, has been expanding its services through innovative approach to blockchain. The trading platform recently acquired Firmo, a startup specialized in the execution of smart contracts across various financial assets.
Firmo
The smart contracts company, Firmo provides its users smart financial contracts across multiple assets, enhancing transaction through different cryptocurrency derivatives.
According to Firmo CEO, the firm’s goal is to provide a trading solution with instant settlements using the concept of tokenization of assets on the Blockchain.
“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.”
eToro is looking ahead based on its belief that all assets can be tokenized. The company is looking at businesses with relevant expertise to contribute to its vision and the Firmo acquisition is part of that vision.
Toward Tokenization of Assets
Many blockchain projects have claimed that every asset can be tokenized even though experts maintain that blockchain doesn’t find application in every industry.
It is the dream of many crypto enthusiasts to see greater application that would have the technology replace most traditional systems in terms of financial investments. Etoro is driving its vision in this regard through the constitution of various contributory businesses to realize this objective.
EToro’s co-founder and CEO, Yoni Assia made this clear,
“Blockchain and the tokenization of assets will play a major role in the future of finance,”
he said.
The belief that asset tokenization is a bigger business than the internet,
“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”
The tokenization of asset would bring new opportunities to the market, as it will allow assets to be more divisible and accessible to people across the world speeding up the industry.
Firmo founder and CEO spoke on the work of the company saying that it is
“Enabl[ing] our users to trade any asset globally with instant settlement by tokenizing assets and executing all essential trade processes on the blockchain”.
The amount involved in the eToro acquisition was not disclosed. What is obvious is that the company would act as internal R&D driving the eToro vision.
