Multi-asset platform eToro announced that it had acquired smart contract infrastructure company Firmo. With this new acquisition, the platform is taking a giant leap into the tokenization. The company did not reveal the amount for which Firmo was acquired.
Firmo provides smart contracts for derivatives products that can be enabled securely on any major blockchain network. According to eToro co-founder and CEO Yoni Assia, this acquisition will help the company “to accelerate the growth of our tokenized assets offering.”
He noted that the future of finance will be dictated by tokenization of assets and blockchains, adding, “We believe that in time all investible assets will be tokenized and that we will see the greatest transfer of wealth ever onto the blockchain.”
Assia also said that the company’s expansion has been largely organic, but as their business is growing, they are looking to acquire a new business that could help foster their place in the fintech innovation ecosystem. He pointed out that the market is “particularly exciting” right now.
eToro was founded in 2007 and is based in Israel. The company is one of the most well-known companies in the financial ecosystem and allows trading of several CFD and non-CFD based assets on its platform.
The team of Firmo will be absorbed into eToro and will become an internal innovation unit that will be working to tokenize all assets on the platform. The scope of their work will include the research and development of infrastructure for representing assets and executing trades on blockchain networks.
Firmo founder and CEO Dr. Omri Ross said that distributed ledger technology had driven an explosion in innovation in the financial worlds, but there are several challenges to mass adoption and legacy infrastructure integrations. Ross added that their goal is to enable their users to trade any asset globally by tokenizing them and providing an instant settlement.
The underlying technology of Firmo creates a platform that can securely deploy smart financial contracts on any blockchain. Dubbed the ‘FirmoLang,’ the domain-specific and formally verified contract language sits at the heart of this platform that supports Firmo’s compiler. The language can be translated to public blockchain networks like NEO, EOS, and Ethereum.
Assia praised Firmo’s work saying that their ground-breaking work has allowed the development of practical applications in blockchain that could lead to frictionless global trading.