Yoni Assia, founder and current CEO of eToro, was at the Ethereal Summit in Tel Aviv and shared his thoughts on the latest trading system, his company’s Lira project, and the brokerage’s decision to stand as LP for cryptocurrency derivatives.
The recently concluded Ethereal Summit saw the best and brightest of today’s digital assets market converging in Israel’s commercial capital to discuss the latest in blockchain, decentralization, and technology.
Joseph Lubin on the Topic
ConsenSys chief Joseph Lubin and Vitalik Buterin, the founder of Ethereum, were also at the event. The duo, along with Assia, were key speakers at the blockchain summit.
Assia also took the time to talk to Finance Magnates, starting with the latest commission-free trading business. The eToro CEO stated that equities trading had grown rapidly on their platform and that there’s been a lot of “cross-pollination” as well. He used the term to explain how people who initially came for equities move on to trading in other asset classes.
However, Assia said commission-free trading is a good way to provide an essential service and to encourage more people to join the eToro platform and avail of more of their services. He shared that half of their clients that utilized their equities offerings would then move on to trade in other assets, like crypto, CFDs, or ETFs.
Assia also touched on the restrictions the European Securities and Markets Authority (ESMA) introduced in August and admitted that it had impacted eToro. Fortunately for the platform, their wide array of products and loyal customer base enabled them to weather the fallout from the new regulations.
Another topic that surfaced was eToro’s most recent project, the Lira. It’s an open-source platform that allows users to develop their own crypto derivatives using a simple code.
Open-Source Programming Language for Money
The eToro founder enthusiastically described it as an “open-source programming language for money” that lets people write their own financial contracts. The brokerage firm is treating it like an academic exercise at the moment, but they plan to put those contracts in their ecosystem and let their clients trade in them.
Crypto derivatives contracts are a tricky issue though, and Finance Magnates asked Assia whether he’s afraid of a regulatory reaction, especially if his company will act as a liquidity provider (LP).
The fintech influencer was quick to give assurances that eToro will stand as an LP on derivatives contracts. He said they look at it as a long-term procedure where blockchain assimilates traditional financing.
Assia added that Lira will be part of the system that will facilitate this process, as the program can run on the Ethereum platform and on JP Morgan’s system.