The newly released Etoro may launch its own blockchain, the CEO says
Online brokerage Etoro is investigating whether to spin up its own blockchain, CEO Yoni Assia said luck In an interview on Tuesday. “We are currently evaluating some potential partnerships in both Layer 1 and Layer 2,” he says, referring to two different types of blockchains. “So we might basically launch an Etro sidechain.”
Recently visited Israeli stock trading companies public In May Nasdaqhe said he was talking to “four or five” different blockchain ecosystems, and refused to specify which. He quickly said the launch was not imminent. Still, he said that if Etoro decides to place some of the operations on the crypto rail, the sidechain (a crypto industry jargon for lightweight blockchains built on top of another) remembers the feeling.
“Today, we cannot run the millions of transactions we trade on existing blockchains each month,” he said. “If you want to run the entire Etoro ecosystem, by definition you need a dedicated blockchain.”
Since the market opened on Tuesday, the company’s shares have fallen almost 4%.
Assia’s comments came shortly after his online brokerage. This allows users to exchange both stocks and cryptocurrency. announcement On Tuesday, it was scheduled to release tokenized stock on blockchain. Ethereum. Tokenization refers to the act of putting stocks into a blockchain wrapper. This, in theory, allows traders to buy and sell stocks more quickly without a middleman.
Etoro’s tokenized stocks are available for trading 24 hours a day, five days a week, with the announcement showing that the 100 most popular companies and ETFs listed in the US. According to Assia, online brokerages have begun accessing blockchain-based assets to users only in Europe.
Robin Hood’s Echo
Etoro’s unique blockchain and tokenized inventory plans reflect similar moves from competitor Robinhood.
Robinhood CEO Vlad Tenev in late June I said His company had allowed shares in European Union trade for public US companies and ETFs. He also said he plans to launch his own blockchain using technology from Arbitrum, the Ethereum Layer-2 chain. (Layer 2 is a sidechain variant, similarly built on top of other blockchains, providing faster and cheaper transactions.)
Both Asia, who are you? Ripe The usefulness of tokenized stocks has been tokenized for over a decade, and TENEV claims that tokenization reduces trader costs and helps the markets stay open 24 hours a day, seven days a week.
Still, critics say That tokenized stock is a strategy to avoid public disclosure requirements for public companies. As part of the announcement of tokenized inventory, Robinhood said it will allow traders to buy and sell tokenized stocks in Openai, a privately owned AI Behemoth. After the announcement, Openai I shot it back You did not authorize or authorize the provision of Robinhood.
Etoro’s tokenized inventory offerings don’t currently include private companies, but Assia said it is considering it. “It’s definitely on the radar. I think we’ll see it in the near future.”