Trading platform eToro agreed to acquire Copenhagen-based blockchain firm Firmo to accelerate growth of tokenized financial assets.
As part of the acquisition, Tel Aviv-based eToro is bringing on Firmo’s research and development team, the company said in a statement Monday, confirming an earlier Bloomberg News report. The company didn’t provide financial terms of the deal.
“This acquisition is a game changer for eToro as it will help boost our growth in the future tokenized economy,” Yoni Assia, co-founder and CEO of eToro, said in a phone interview. “We aim to be active players in blockchain consolidation.”
Firmo’s platform can be used to execute financial contracts on multiple blockchains, allowing exchanges to use its programming language to create products like cryptocurrency derivatives or to build a peer-to-peer lending service. Crypto enthusiasts see tokenized assets taking off in 2019, with some entrepreneurs trying to converteverything from property to stocks into tradeabledigital contracts stored on a digital ledger.
eToro is also looking at additional acquisitions, a person with knowledge of the matter said, asking not to be identified because the matter is private. A representative for eToro declined to comment.
eToro, founded in 2007, runs a social trading platform offering access to investing in assets including cryptocurrencies, stocks and commodities, according to its website. eToro already has more than 10 million users in Europe, Asia and the Middle East and has raised about $162 million in funding. The company rolled out some services to U.S. investors this month.