eToro (NASDAQ: ETOR) has rolled out a cashback program that gives UK and European customers 1% back on stocks when they deposit cryptocurrencies. This will encourage the platform to diversify away from digital assets, which account for more than 90% of its revenue.
Of eToro’s total revenue of $2.09 billion in the second quarter, cryptocurrency trading generated $1.91 billion, while stocks and commodities contributed just $114 million. The new promotion may be aimed at funneling some of the profits in cryptocurrencies into traditional markets.
Starting today (Thursday), customers who transfer eligible cryptocurrencies to an eToro crypto wallet and convert them into British pounds or euros will receive 1% of the converted value of domestic equities. UK users choose from UK listed stocks and European customers choose from European listed stocks.
This incentive program addresses the revenue concentration problem that has worsened this year. Cryptocurrencies accounted for 91% of revenue in the second quarter, down slightly from 93% in the first quarter.
Additionally, crypto transactions in July and August increased 49% year-on-year to 10.7 million, with the average transaction size nearly doubling to $345. Traditional capital markets activity grew by just 3%, with stock and commodity trades reaching 87.7 million, and the average trade size increasing by just 4% to $273.
This promotion runs until March 31, 2026, with a monthly cap of £1,000 for UK users and €1,000 for European users. Users must opt-in and select their desired stocks from a list provided by eToro each month.
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This follows another incentive rolled out earlier this week, when eToro introduced a $5 per month Club subscription, offering access to premium features such as 4% cash back, an AI analyst, and high yields on crypto staking.
Expanding crypto options
eToro is also expanding the range of cryptocurrencies it accepts for deposits beyond Bitcoin and Ethereum. Users can now transfer XRP, USDC, Polygon, Chainlink, Aave, Uniswap, and Fetch.ai from external wallets or exchanges to the eToro Crypto Wallet.
After converting their holdings into pounds or euros, customers can invest their funds in any product on eToro’s platform, including stocks from over 20 exchanges.
“Many investors first entered the market through cryptocurrencies and are now looking for ways to reinvest their profits into other asset classes,” said Doron Rosenblum, executive vice president of business solutions at eToro. “As we are a multi-asset platform that handles stocks from over 20 exchanges, we are able to offer our users stockbacks in domestic stocks for their cryptocurrency deposits.”
eToro’s assets under management increased 77% year over year to $19.7 billion in August, and the number of funded accounts increased 15% to 3.69 million accounts. Interest assets increased 46% to $7.5 billion.
Rosenblum added that the offer “will motivate more users to diversify their portfolios beyond cryptocurrencies” as part of the company’s strategy to “open up global markets.”
