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After raising $100 million in March, trading platform eToro has announced plans to launch a cryptocurrency exchange and crypto wallet, as well as plans for its first US expansion. eToro started getting into the crypto space in 2014, when it launched contracts for difference (CFDs), and has since allowed users to buy and sell certain cryptocurrencies via the platform. As such, its decision to deploy a crypto exchange does not come as a surprise.
Here’s what these announcements likely mean for eToro’s business:
Launching a crypto exchange will further diversify its services. eToro is known for its social features that allow investors to copy popular trades by experienced investors. It currently has 250 experts who trade via the platform that customers can mimic. By bringing this service to the crypto space, eToro may be able to onboard customers who wouldn’t usually trade the assets, perhaps due to lack of confidence. That could make the platform attractive to an entirely new crop of investors.
Its launch in the US will give eToro a more global reach. The company already has operations live in the UK, Israel, and Europe, and expanding to the US will allow it to onboard a much larger swathe of customers. eToro will enter the US with only its crypto exchange at first, but other features will likely follow. In fact, it is currently in talks with financial institutions in the US, regulators, and advisors about the move.
eToro’s deep experience in trading and fresh capital will likely help it remain successful. That eToro recently secured a large funding round will likely come in handy for its plans to launch …read more
Source:: Business Insider