Etoro moving into neobanking
Etoro moving into neobanking
Mr. Assia, eToro listed on the Nasdaq in May. What has the company been doing since then?
We’ve launched a number of initiatives and reached several milestones – both in terms of key figures and on the product side. Most recently, we obtained the full EU MiCA license for crypto trading and custody, which allows us to offer our users in Germany even more diversification in trading and investing. I’ve long believed in crypto as an asset class, and I find it fascinating how access to it is opening up to the broader public in the US. But Europe, with its harmonised market, can also generate strong momentum.
Has it become easier for eToro to operate in the US now that it’s a listed company there?
Yes, absolutely. The IPO has clearly boosted brand recognition for eToro – not only in the US but globally. In addition, eToro now operates on four pillars: trading, investing, savings, and spending – enabling us to reach more target groups and foster stronger interaction among our users. One example is our new 24/5 trading feature, which allows investors to trade selected US stocks and ETFs around the clock on weekdays. This gives retail investors access to the stock market even outside regular trading hours. Looking ahead, we see tokenisation as the next major step: transferring real-world assets like stocks onto the blockchain could – pending regulatory approval – enable 24/7 trading and instant settlement of tokenised assets.
Source: Nasdaq
How is Etoro approaching the use of AI in investing?
For example, we’ve expanded our Smart Portfolio offering with an AI-driven long/short strategy, which can be used for market-neutral positioning. We’ve also launched Tori, an AI assistant powered by large language models that provides educational insights and portfolio analysis.
With the introduction of a card business, is Etoro now moving into neobanking?
Yes, that’s a natural entry point into banking – and we’re starting in Europe. A debit card offering 4% back in stock rewards is quite something. It complements our local IBAN services and supports our stock savings initiatives. We’ve also formed a partnership with BlackRock to offer a model portfolio, another building block in promoting long-term equity investing.
Despite solid second-quarter results, the stock has recently fallen well below its IPO price. What’s behind that?
Well, we can only continue to demonstrate how well Etoro is performing – the rest is up to the market. The third quarter is off to a strong start, and we have 300 million dollars in cash plus a 250 million dollars credit line, giving us flexibility for acquisitions. But we’re only looking at bolt-on deals that complement our existing products and regional footprint. For instance, we recently obtained a license in Singapore, and we plan to develop that office into a hub for the Asia-Pacific region.
