Israeli brokerage firm eToro has expanded its cryptocurrency offerings in Germany by launching spot trading services. Until now, German customers were limited to trading cryptocurrency contracts for differences (CFDs) on the platform.
The firm announced that it has partnered with two local, BaFin-regulated companies to support the new service: DLT Finance for spot trading execution and Tangany for custody of digital assets. While the partnership with DLT Finance is new, eToro had already begun transitioning client assets to Tangany earlier this year from a different custody provider.
Under the new arrangement, German traders will interact with DLT Finance as their trading counterparty, and Tangany will hold their cryptocurrency assets on behalf of eToro. To trade, users will need to agree to the terms of service from all three entities—eToro, DLT Finance, and Tangany. eToro plans to charge a 1% fee on crypto asset trades but has indicated that fees could change over time.
This development follows closely after eToro’s $1.5 million settlement with the U.S. Securities and Exchange Commission (SEC), which led the company to reduce its crypto offerings in the U.S., limiting them to Bitcoin, Bitcoin Cash, and Ether. The broker has also scaled back non-leveraged CFD crypto trading in France and Australia this year, though it continues to offer physical crypto trading in both markets.
eToro ended crypto custody in Germany
Earlier this year, eToro ended its cypto custody service in Germany. The custody of digital assets was transferred to Tangany GmbH, a Munich-based crypto custody service provider overseen by the German Federal Financial Supervisory Authority (BaFin).
Although eToro Germany ceased its crypto custody services, the platform allows customers to sell or transfer their crypto assets to another custodian through the eToro platform. But transferring assets to another custodian means they can no longer be sold via eToro. Staking is also no longer available, and the acquisition of new crypto assets via eToro remained suspended, until now.
Germany has been creating a friendly environment for crypto custodians, passing laws that allow banks and crypto specialists to manage digital assets and offer related services. However, the regulatory landscape remains challenging, as seen with Binance, the world’s largest cryptocurrency exchange, which was compelled by the German regulator to withdraw its application for a crypto license.
eToro sponsors Bayer 04 Leverkusen
eToro is determined to expand in Germany, having recently signed a sports sponsorship deal with Bayer 04 Leverkusen, the leading football club playing in the German Bundesliga. The social trading platform has become an Official Premium Partner.
Boasting more than 38 million registered users, eToro will also become the Official Trading Partner of the German club. One of eToro’s contractual rights as a premium partner is to be featured on the partner backdrops in the mixed zone of the BayArena and at the press conferences before and after the Werkself’s home games.
The partnership also includes an extensive LED perimeter package in the stadium and other advertising services, including in the digital area – including as a match schedule presenter in the Bayer 04 app. In addition, eToro receives hospitality services from Bayer 04 with access to VIP tickets.
