Etoro online brokerage explores if you have to run your own blockchain, said CEO Yoni Assia Fortune In an interview on Tuesday. “We now assess some potential partnerships with layer 1 and layer 2,” he said, referring to two different types of blockchains. “Thus, we could mainly launch an Etoro side chain.”
The Israeli Society for Trading of Actions, which was recently liable in May in May on the Nasdaq, speaks with “four or five” different blockchain ecosystems, he said, refusing to specify which ones. He quickly said that any launch is not imminent. However, if Et Etoro decides to put part of his operations on crypto rails, a side chain-the crypto jargon for a light blockchain built above another-makes sense, he said.
“We cannot perform the millions of transactions that we make Transg on a monthly basis on existing blockchains today,” he said. “We will need, by definition, to have a dedicated blockchain if we want to execute the entire Etoro ecosystem.”
The actions of the company have dropped by almost 4% since the markets open on Tuesday.
Assia’s comments came directly after her online brokerage house, which allows users to negotiate actions and cryptocurrencies, announced Tuesday that he planned to launch chip actions on Ethereum blockchain. The tokenization refers to the act of putting actions in blockchain packaging, which theoretically allows merchants to buy and sell stocks faster without an intermediate man.
The tokenized actions on Etoro will be exchanged 24 hours a day, five days per week, and will include 100 of the most popular companies and ETF listed in the United States, according to the announcement. The online brokerage house first opens access to assets based on blockchain to users based only in Europe on a waiting base, said Assia.
Robinhood echoes
The plans of Etoro for his own blockchain and token stocks reflect similar movements of his competitor Robinhood.
At the end of June, the CEO of Robinhood, Vlad Tenev, said that his business left customers in the European Union of token actions for public companies and American FNB. He also said he was planning to launch his own blockchain using arbitrum technology in layer 2 Ethereum. (Layers 2 are a variant of side chains and are also built above other blockchains and offer faster and cheaper transactions.)
Assia, who has thought about the usefulness of token actions for more than a decade, and Tenev affirms that tokenization reduces costs for traders and helps markets to operate 24 hours a day, seven days a week.
However, criticisms say that tokenized actions can be a strategy to bypass public disclosure requirements for listed companies. As part of his announcement as a token grant, Robinhood said that he would allow traders to buy and sell stocks in token in Openai, the AI private giant. After the announcement, Openai retaliated that he had not authorized or approved Robinhood’s offer.
Although the tokenized stock offers in Etoro are currently not inclusive of private companies, Assia said he was examining: “It is definitely on the radar. I think we will see that in the near future.”
