Since its inception in 2007, eToro has always been deeply committed to pursuing innovation, in particular within the crypto and blockchain space. In 2013, eToro CEO and Founder Yoni Assia, together with Vitalik Buterin, founder of Ethereum, published a white paper on colored coins, a way of representing and managing real world assets on top of the Bitcoin Blockchain, and eToro introduced Bitcoin trading on its trading platform, with more cryptocurrencies added throughout recent years.
The eToro Wallet application was launched in 2018 to enable eToro’s clients to redeem, hold and convert cryptocurrencies, and in 2019 eToro acquired smart contract development startup Firmo, which was rebranded as eToroX Labs, a dedicated blockchain innovation unit. eToroX, eToro’s professional and institutional-grade crypto exchange, was launched in 2019 offering eToro Tokenized Assets, which are stablecoins that were developed in-house by eToroX Labs. As it looks to the future, eToroX is exploring the potential of several more innovative projects, including staking and DeFi among others.
eToroX is continually working to establish synergistic connections between academia and the industry. Our research team leads commercial research projects, think tanks, industrial PhDs and Post-docs, academic courses, and events. The research team is headed by Professor Dr Omri Ross, Phd., Chief Blockchain Scientist of the eToro Group Ltd. and Managing Director eToro Denmark
The tokenizing process of an asset-class creates a digital representation of a given asset on the blockchain. Tokenized assets on the blockchain means that the financial world is becoming even more accessible, on a constant and consistent 24/7 basis.
Tokenized (digital) assets offer users three key advantages, which are derived from the underlying properties of blockchain technology.
Tokenized assets can be traded against an expanding set of cryptocurrencies and other tokenized assets, unlocking several benefits for professional traders. eToroX users can trade assets against each other on eToroX, and can instantly execute orders from anywhere in the world at any time in response to news events or insights that occur in the wee small hours.
With the tokenized asset market at their fingertips 24 hours a day, and the range of eToro tokenized assets available, traders on eToroX are perfectly placed to get a head start in this rapidly growing ecosystem. Furthermore, with an ever-growing portfolio of digital assets traded on the eToroX platform, eToro remains committed to exploring the potential of how digital assets can add significant value for our clients.
When staking assets on the blockchain, investors are designating funds towards voting on the next block. When a block is verified by the network, and added successfully to the blockchain, the investor responsible for suggesting the block receives a reward in the native asset-class; conversely, when a block is rejected, the investor loses some or all of the money entered in the hope of receiving a reward.
Much like the Proof-of-Work mechanism, the process of putting assets “at stake” to secure the blockchain contributes to the security and decentralization of the network. Since the computing process of locking and releasing assets is less intensive than guessing an arbitrary number, the Proof-of-Stake mechanism is often believed to deliver faster processing time, with less energy consumption.
eToro is conducting intensive research on innovative methods of Proof-of-Stake mechanism for its clients, to ensure that our clients have access to staking, while simultaneously enjoying the security guarantees and a wide array of investment opportunities on the eToro platform, and is planning to launch a staking program in the near future.
Decentralized finance, colloquially referred to as DeFi, is a new category of financial applications. DeFi applications are written as “smart contracts” and deployed to the blockchain, enabling them to run independently, with no need for human intervention or control. The emergence of several popular DeFi applications in recent years has introduced new perspectives on executing lending and trading activities. eToro is actively analyzing how these concepts can provide new opportunities for our customers, through in-house development of applications and integration to existing services.
Recently, eToro demonstrated the feasibility of executing parts of the OTC contract cycle on the blockchain, with the open source Lira project, a formally verified domain specific programming language that allows investors to compose and deploy complex financial contracts to the blockchain.
Universal Basic Income, or UBI, means giving everyone a regular, equal, cash payment, regardless of social standing, wealth, or income. eToro is deeply committed to help further this vision, and in 2019 launched GoodDollar, a blockchain-powered, non-speculative crypto project which is geared towards a global distribution on the principles of UBI.
GoodDollar is a recurrent payment (as opposed to a grant or loan), paid in (digital) cash, which allows its recipients to convert their benefits into whatever they choose. It is paid to all, on an individual basis (as opposed to per household) and is not targeted at a specific population. The payment is unconditional, involving no work requirements or sanctions, meaning it is accessible to those in work and out of work, voluntarily or otherwise.