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.
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.
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.”
