Online brokerage service eToro has acquired options trading platform Gatsby to expand its presence and services in the US. The deal was finalized for $50 million (about Rs 400 crore) in cash and common stock. Headquartered in Tel Aviv, Israel, eToro began as a fintech firm in 2007, with a focus towards the crypto sector as its business developed. Meanwhile, Gatsby is a commission-free options and stock trading app founded in 2018 in New York by co-founders Jeff Myers and Ryan Belanger-Saleh.
“We’ve always thought of them as something we’d love to hang out with as good big siblings. In terms of product and culture, it’s very fitting and we’re really excited about the next chapter in our shared future.” Cited Belanger-Saleh says.
As part of the deal, the Gatsby team will be absorbed into the eToro brand. Gatsby President Davis Gaines, Chief Operating Officer Peter Quinn, Chief Technology Officer Jeffrey Claes and Head of Product Matt Morris will also join the new parent company’s team.
The newly acquired options trading firm allows users to trade stocks and options on listed companies and exchange traded funds (ETFs) without paying any commissions or fees. Back in March 2021, Gatsby raised $10 million (about Rs 80 crore) during a Series A funding round. Barclays Bank, Techstar Ventures and Beta Bridge Capital are among Gatsby’s backers.
The US is currently seeing an overall increase in crypto adoption, so eToro’s expansion plans in the nation don’t come as a complete surprise.
In June, a survey by Deloitte said that more than 75 percent of U.S. retailers are interested in adopting stablecoins as a legitimate payment option for dollars and cards. Deloitte selected more than 2,000 senior members of retail organizations for this survey.
Crypto transactions made for 35 percent of total online payments for AMC theaters. This data is for the first three months of this year i.e. January to March. The theater chain allows people to pay for selected purchases in crypto assets. These include Bitcoin, Dogecoin, Shiba Inu, Ether, Litecoin and Bitcoin Cash.
In recent times, several big brands based in the US have already started experimenting with crypto payments, leading to mainstream crypto adoption in the country.
Several restaurants such as Chipotle Mexican Grill and Crypto Street Restaurant, as well as Swiss watch-maker Tag Heuer, and luxury brands such as Italian apparel label Gucci and French luxury label Balenciaga, have opened crypto payments in the US.