eToro (NASDAQ:
ETOR) rolled out a
cashback program giving UK and European customers 1% back in stocks when they
deposit cryptocurrencies, a push by the platform to diversify away from digital
assets that account for more than 90% of its revenue.

Cryptocurrency
trading generated
$1.91 billion of eToro’s $2.09 billion in total revenue during the second
quarter, while equities and commodities contributed just $114 million. The new
promotion potentially aims to funnel some of those crypto gains into
traditional markets.

Starting
today (Thursday), customers who transfer eligible cryptocurrencies to their
eToro Crypto Wallet and convert them to British pounds or euros receive 1% of
the conversion value in domestic stocks. UK users select from British-listed
equities, while European customers choose from European-listed stocks.

eToro Crypto Trading
Surges, Traditional Markets Lag

The reward
program addresses a revenue concentration problem that has intensified this
year. Crypto accounted for 91% of second-quarter revenue, down only slightly
from 93% in the first quarter.

Moreover, crypto
trades jumped 49% year-over-year to 10.7 million during July and August,
with the average trade size nearly doubling to $345. Traditional capital
markets activity showed modest 3% growth, with equity and commodity trades
reaching 87.7 million and average trade sizes increasing just 4% to $273.

The
promotion runs through March 31, 2026, with monthly caps of £1,000 for UK users
and €1,000 for European customers. Users must opt in and select their preferred
stock from a list provided monthly by eToro.

This
follows another incentive rolled out earlier this week, when
eToro introduced a five-dollar monthly Club subscription that provides
access to premium features including 4 percent cashback, an AI analyst, and
higher yields on crypto staking.

Expanding Crypto Options

eToro is
also broadening eligible cryptocurrencies for deposit beyond Bitcoin and Ethereum.
Users can now transfer XRP, USDC, Polygon, Chainlink, Aave, Uniswap, and
Fetch.ai from external wallets or exchanges to their eToro Crypto Wallet.

After
converting holdings to pounds or euros, customers can invest the funds in any
instruments on eToro’s platform, which includes stocks from more than 20
exchanges.

“Many
investors first entered the markets through crypto and are now looking for ways
to reinvest those gains into other asset classes,” Doron Rosenblum, Executive
Vice President of Business Solutions at eToro, said. “Being a multi-asset
platform with stocks from over 20 exchanges, we are able to reward users with
stock-back in domestic equities on crypto deposits.”

Assets
under administration at eToro reached $19.7 billion in August, up 77% from the
previous year, with funded accounts growing 15% to 3.69 million.
Interest-earning assets climbed 46% to $7.5 billion.

Rosenblum added that the offer will “motivate more users to diversify their portfolios beyond
just crypto” as part of the company’s strategy to “open the global
markets.”

This article was written by Damian Chmiel at www.financemagnates.com.

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