Cryptocurrency trading platform eToro has filed for an initial public offering (IPO) in the United States. According to a report by Financial Times on Thursday, the firm made confidential filings to the United States Securities and Exchange Commission (SEC) to carry out a possible IPO in New York.Â
As revealed, eToro could be listed in New York at least by Q2 2025. Meanwhile, the report cited undisclosed sources that are familiar with the issue indicating that the filing could put the value of the company at $5 billion or more.
Don’t forget that in 2023 eToro raised $250 million in a funding round valuing the company at $3.5 billion. The confidential filing will allow the firm to work on its public offering plans privately before deciding to reveal the official papers.
The report indicated that top banks like Goldman Sachs, Jefferies, and UBS are supporting eToro with the IPO process. More so, eToro will aim to leverage the filing to expand into the US market and attract new investors.
Side Note on Etoro
eToro is a global trading company with more than 33 million registered users across the globe. The firm is currently operating in more than 140 countries.
Initially, the platform has established its presence in the United Kingdom and it is aiming to replicate the same in the US. The filing underlined the improving relationship between eToro and the United States SEC.
Recall that in September, the SEC ordered eToro to remove cryptocurrency trading options for its US users. Also, the regulator accessed the firm of operating in the country as a broker and clearing agency without proper registration.
To comply with the demands of the SEC, the company agreed to pay a $1.5 million settlement fee. Similarly, eToro agreed to limit its cryptocurrency trading options allowing users to only trade assets like BTC, BCH, and ETH.
During the year, eToro also received an advisory notice from the Securities and Exchange Commission in the Philippines. In the notice, the financial regulator warned the platform to desist from selling or offering unregistered securities to its citizens.
The SEC stated that the company isn’t registered as a business entity in the Philippines. Additionally, the regulator explained how eToro failed to obtain needed licenses under the Securities Regulation Code to offer securities or function as a broker-dealer.