eToro is a Cyprus-based social trading and multi-asset brokerage company. Recently they announced plans of implementing eight stablecoin versions of other major currencies. Currencies such as the Euro, Yen, and Swiss francs within their platform. They believe that users are in need of this feature.
eToro Launching a Crypto Exchange
eToroX is the new crypto-to-crypto service/exchange that eToro is about to launch, and implementing eight stablecoins is just an introduction of an ambitious plan to offer tokenized versions of other assets. These assets might also include precious metals and fine art.
If you need to refresh your memory on what is a stablecoin – read our explanatory article!
The major problem with stablecoins is that many skeptics believe that usually, companies haven’t got the reserve of fiat to fully back the stablecoins on a one-to-one basis. However, eToro claims that their company is backing the stablecoins with futures contracts.
Concerns of the Public Demand
Arieh Levi, a senior analyst at CB Insights believes that the users will stick to their platforms which they already use:
“It’s a pretty saturated market in terms of crypto trading. I’m not sure there will be too much demand as the existing players will likely stick to the platforms they already use.”
However, eToro CEO Yoni Assia stresses that he believes that there will be demand for these type of assets. He says that many traders would want to “bet on the price movement of Bitcoin against currencies like the Canadian and Australian dollar.”
The main concern is that eToro will have to compete with such industry giants as Binance and Coinbase Pro.
Pushing Into the U.S. Market
The launch of eToroX exchange is a part of getting into the U.S. market. Recently eToro began offering a few of the most popular cryptocurrencies like Bitcoin, Ethereum, Ripple and etc.. This was done specifically for the U.S. market. Now, eToro claims that around four or five percent of new registrations come exactly from the U.S. They are pleased with these numbers and believe that they are doing the right thing.
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