Blockchain technology is set to “eat” traditional financial services, according to Yoni Assia, co-founder and CEO of social trading network, eToro.
Commenting on the launch of eToro’s blockchain division’s crypto exchange, Assia says: “Just as eToro has opened up traditional markets for investors, we want to do the same in the tokenised world. We want to bring crypto and tokenised assets to a wider audience, allowing them to trade with confidence.
“This is the future of finance. Blockchain will eventually ‘eat’ traditional financial services through tokenisation.
“In time, we will see the tokenisation of all traditional asset classes, as well as the emergence of new asset classes such as tokenized art, property or even IP.”
Tokenisation aims to open up investment opportunities to a wider array of individuals through allowing fractional ownership of assets.
The use of blockchain technology also makes it a cheaper and more efficient means of raising capital for businesses.
eToroX has launched a regulated venue for the trading of cryptoassets as well as an array of stablecoins.
Stablecoins are cryptocurrencies pegged to the value of a commodity or fiat currency, so are designed to offer the speed and security of payments without the volatility of the likes of Bitcoin and Ethereum.
eToroX’s echange will include eight fiat-stablecoins, including coins pegged to the value of the United States dollar, the Pound, the Euro, and the Yen, and six cryptos: Bitcoin, Ethereum, Ripple, Dash, BitcoinCash and Litecoin.
Blockchain financial services future
eToro says the exchange is a “natural next step” for its embrace of blockchain technology.
The company began enabling users to trade Bitcoin in 2014, one of the first regulated bodies to do so.
“We are proud to be one of the first companies in the world to obtain a license for cryptoassets, and one of only a handful of regulated exchanges in the crypto space,” says Doron Rosenblum, managing director of eToroX.
“In the coming weeks and months we will add more cryptoassets, stablecoins and tokens to the exchange and will work with other exchanges to encourage them to list our growing range of stablecoins.”
Assia adds: “We believe that we will see the greatest transfer of wealth ever as financial services move onto the blockchain. The blockchain brings transparency and a new paradigm for asset ownership.”
eToroX is certified as a regulated Distributed Ledger Technology provider by the Gibraltar Financial Services Commission.