Online brokering service eToro has acquired options trading platform Gatsby in a bid to expand its presence and services in the US. The deal was finalised for $50 million (roughly Rs. 400 crore) in cash and common stock. Headquartered in Israel's Tel Aviv, eToro started in 2007 as a fintech firm that shifted focus towards the crypto sphere as its business evolved. Gatsby, meanwhile, is a commission-free options and stock trading app founded in 2018 by co-founders Jeff Myers and Ryan Belanger-Saleh in New York.
“We've always thought of them as the cool older sibling we'd love to hang out with. In terms of product and culture, it's a great fit and we're really excited about the next chapter in our shared future,” The Block quoted Belanger-Saleh as saying.
As part of the deal, the Gatsby team will be subsumed within the eToro brand. Gatsby's president Davis Gaynes, chief operating officer Peter Quinn, chief technology officer Jeffrey Kleiss and head of product Matt Morris will also join the team of the new company parent.
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 (roughly Rs. 80 crore) during a Series A funding round. Barclays Bank, Techstar Ventures, and Beta Bridge Capital are among the backers of Gatsby.
The US is currently witnessing an overall rise in crypto adoption, hence eToro's expansion plans in the nation do not come as a complete surprise.
In June, a survey by Deloitte had said that over 75 percent retailers in the US are interested in adopting stablecoins as legitimate payment alternatives to dollar and cards. Deloitte had polled over 2,000 senior members of retail organisations for this survey.
Crypto transactions made for 35 percent of the total online payments for AMC Theatres. This data is for the first three months of this year, January to March. The theatre chain allows people to pay for select 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 began experimenting with crypto payments, driving main-stream crypto adoption in the country.
Several restaurants like Chipotle Mexican Grill and Crypto Street Restaurant, as well as luxury brands such as Swiss watch-maker Tag Heuer, and Italian apparel label Gucci and French luxury label Balenciaga, have opened crypto payments in the US.
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