EToro, the social trading company, has acquired Firmo, a smart contract developer based in Copenhagen, Denmark. According to a press release, published earlier today, Firmo “enables smart contracts for derivatives to be securely enabled on any major blockchain”. The financial terms of the deal haven’t been disclosed.
As part of the deal, Firmo’s research and development team will join eToro to act as a “an internal innovation unit” within the Tel Aviv-based company. Firmo’s developer will be working on tokenising all assets on eToro’s trading platform.
“The acquisition of Firmo will enable eToro to accelerate the growth of our tokenized assets offering,” eToro’s co-founder and chief executive officer Yoni Assia commented on the deal. “Blockchain and the tokenization of assets will play a major role in the future of finance. 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”.
In an interview with Bloomberg following the acquisition, Assia described the deal as a “game changer” for eToro. He also said that the company wanted to be an active in “blockchain consolidation”.
Bloomberg also cited an unnamed source familiar with the matter, according to whom, eToro is looking to make additional acquisitions. The newswire said that a representative of eToro had declined to comment.
EToro has recently made moves to expand the reach and scope of its business. As reported by iNVEZZ, earlier this month the company launched its crypto trading offering to the US, making its portfolio of 13 digital currencies, as well as it unique social features such as CopyTrader, available to American traders. In addition to the crypto trading platform, the company also rolled out its digital currency wallet, which initial support of five digital coins – Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH).