eToro launches a cryptocurrency exchange

eToroX which is the blockchain division of eToro has announced the launch of a new crypto exchange. This is a big move for eToro and a further push into the crypto space.

Wallet and Exchange services provided by eToro X Limited (‘eToro X'), a limited liability company incorporated in Gibraltar with company number 116348 and with its registered office at 57/63 Line Wall Road, Gibraltar. eToro X is a regulated DLT provider licensed by the Gibraltar Financial Services Commission under the Investments and Financial Fiduciary Services Act with licence number FSC1333B.

What has eToro launched:

So eToroX has announced a few things.  First up a crypto exchange where you can trade a number of crypto assets.  It's much like other exchanges where you deposit crypto and use it to trade and exchange into other coins and tokens.

What's most exciting to me is that eToro has also launched a number of stable coins.  These tokens represent an underlying asset and let you trade and store that asset on the blockchain.

Here are the Stablecoins that have been announced:

  • NZDX – New Zealand Dollar stablecoin
  • JPYX – Japanese Yen stablecoin
  • CHFX – Swiss Franc stablecoin
  • USDEX – U.S dollar stablecoin
  • EURX – Euro stablecoin
  • GBPX – British Pound stablecoin
  • AUDX – Australian Dollar stablecoin
  • CADX – Canadian Dollar stablecoin

They are also launching:

  • GOLDX – A gold backed stablecoin
  • SLVRX – A silver backed stablecoin

These two commodities are shown in marketing material but I wasn't able to trade them yet.

This means you'll be able to trade crypto assets using a stablecoin in multiple currencies.  While there currently are many stablecoins backed by the U.S dollar, the world needs access to stablecoins in other currencies.

Through the exchange you can trade Bitcoin and other cryptos (including Ethereum and Litecoin) for stablecoins and buy stablecoins directly with a cryptocurrency of your choice.

eToroX Wallet

Last year, eToro launched a crypto wallet.    I'm not sure at this stage whether you'll be able to transfer coins from the wallet to the exchange – although I'm sure this will be a feature (if not already) in the near future.

Why is this a big deal?

eToroX is a regulated exchange crypto exchange.  There are a lot of exchanges out there, but not many you can trust.  eToro is a trusted company that has been in the financial industry since 2007.  And since then they have grown into one of the worlds largest trading platforms with over 10 million registered users.

Personally i'm most excited by the new stablecoins.  The hardest thing about cryptocurrency is getting money in and out of fiat currency.  Stablecoins make it easy to hold dollars (or another currency) as a token.  This makes it so much easier for traders and exchanges.  It essentially allows you to be your own bank and hold your assets yourself.

It's good to see eToro continuing to develop and support cryptocurrency.  This is their biggest move yet – actually launching a number of stablecoins.  This could be huge for cryptocurrency and I'm sure will be the future of eToro too.

Using the Exchange

Once you've got an exchange account you simply deposit a cryptocurrency of your choice and you can start trading.  If you're looking to trade or invest in cryptocurrency using fiat, you can still do that on eToro. eToro is the broker with forex, stocks, commodities and cryptos and eToroX is the crypto exchange which is powered by cryptocurrency.

Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Leave a Reply